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Thursday, July 7, 2011

How 'robo-signing' occurs in the mortgage industry

The robo signing scandal virtually shut down the nation's entire foreclosure machine last fall. County officials in at least three states say the illegal practice continues. Here are some ways that robo signing can work:
-An entry-level employee with no banking experience signs off on mortgage-related affidavits without verifying whether the bank owns the loan or whether the homeowner owes the debt.
-A notary stamps the document even though the notary wasn't present at the time the document was signed. The notary signature might also be different that the one on file with the agency that licensed the notary.
-A qualified bank employee signs his name using numerous titles on behalf of more than a dozen different financial institutions.
-In all of these cases, robo-signing involves people signing documents and swearing to their accuracy without verifying any of the information.

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