Robo-signing is a new word coming from the Foreclosure Scandal that has found its way into our everyday lives. So, what does robo-signing mean exactly?
Upon initial review of the information robo-signing looked to be a result of the huge number of foreclosure documents that needed to be approved and signed off on.
It seems that many people thought these were qualified individuals who were overwhelmed with the amount of paperwork they needed to complete to have a foreclosure proceeding move forward.
Now, in some recent developments, it seems as though another component of robo-signing took place. As the servicers of the lenders tried to keep up with the paperwork they started to hire employees who did not have the correct mortgage background.
How can someone who does not have an understanding of basic mortgage terms and practices be expected to appropriately review foreclosure documents?
Many States have joined in on this to help consumers. As stated in my previous posts, this scandal will slide foreclosures into 2011 which will have a significant impact on the housing recovery. So goes housing – so goes the economy!
Financial institutions continue to play havoc with our economy. If you remember, the 1991 housing recession was caused in part by the collapse of the Savings & Loan industry due to toxic real estate loans. The federal government should have recreated the RTC (Resolution trust Corporation) which was formed in the early ‘90’s to deposit all of the failed real estate loans under a single receivership. It worked then but not now?
No comments:
Post a Comment