White House Supports Foreclosure Probe, but No Moratorium
White House Press Secretary Robert Gibbs said today that the Obama Administration supports a probe into the faulty foreclosure proceedings, but is against a moratorium.
Gibbs said they want to get to the bottom of the whole foreclosure snafu while avoiding the unintended consequences of a widespread foreclosure freeze.
The probe relates to the use of so-called robosigners, employees/agents who signed off on hundreds or thousands of foreclosure documents in a short amount of time, essentially proving they didn’t do their due diligence or follow protocol.
The allegations have already caused a number of mortgage lenders to halt foreclosures in various states, with Bank of America the only mortgage lender to freeze foreclosures nationwide.
As many as 40 state attorney generals are expected to announce a joint probe into the mortgage servicing industry tomorrow, which could lead to an all-out foreclosure blockade.
But banks and lenders have been adamant that the problems stem from technical issues rather than anything fraudulent.
Obama Fell Victim to Robosigner?
However, an exposé over at 4closurefraud.org makes it pretty clear that forgeries were par for the course in the mortgage industry, from start to finish.
Even Obama’s mortgage has signs of robosigner all over it…so apparently some cleaning up is still needed before we learn anything from the present mortgage crisis.
Similar Posts:
- Texas AG Calls for Foreclosure Moratorium Over Robosigners
- Bank of America Stops Foreclosures in All 50 States
- Homeowners at Risk of Foreclosure Taking Out Second Mortgages
- Zillow: 38% of Local Single-Family Homes Underwater
- Hope Now Loan Modifications More Than Double HAMP in 2010
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