RSS
 


JP MORGAN HALTS 50K FORECLOSURES AS CHASE JOINS THE FORECLOSURE FRAUD LIST

29 Sep

Could it be? Really – could it be?  This story just flew across our desk and we are just smiling.  Now, that’s GMAC, CHASE, c’mon, fells – let’s have the rest of you out here where we can see you:  WELLS, B of A, CITI, and oh, let’s not forget FREDDIE and FANNIE…

Let the Foreclosures STOP until we figure out what the HELL is going on around here; that seems like a reasonable plan. Indeed; and perhaps some prosecutions along the way as well?  Hmmmmm?   C’mon now, we can do this…

Really, we can.

Well, according to the Associated Press, it’s may not be ALL foreclosures – but you gotta think if you are a Chase borrower in trouble right now, this is sounding pretty good.

JPMorgan halts 50K foreclosures for possible flaws

By JANNA HERRON and ALAN ZIBEL (AP) – 1 hour ago

NEW YORK — JPMorgan Chase has temporarily stopped foreclosing on more than 50,000 homes so it can review documents that might contain errors.

JPMorgan’s move Wednesday makes it the second major company to take such action this month, underscoring a growing legal problem. The issue could stall an already overloaded foreclosure process.

Still, analysts don’t expect the delays to reduce the number of foreclosures over the long run.

“It will probably slow things down for a couple months while these documents are reviewed,” said Rick Sharga, a senior vice president at foreclosure listing service RealtyTrac Inc. “It won’t stop things.”

But if the problems turn up at more of the largest mortgage companies, a foreclosure crisis that’s already likely to drag on for several more years could persist even longer.

GMAC Mortgage LLC last week halted certain evictions and sales of foreclosed homes in 23 states to review those cases. The company said it found procedural errors in some foreclosure affidavits.

After GMAC’s announcement, attorneys general in California and Connecticut told the company to stop foreclosures in their states until it proves it’s complying with state law. The Ohio attorney general this week asked judges to review GMAC foreclosure cases. And in Florida, the state attorney general is investigating four law firms, two with ties to GMAC, for allegedly providing fraudulent documents in foreclosure cases.

The issue is also gaining attention on Capitol Hill. Last week, Rep. Barney Frank, D-Mass. and two other lawmakers wrote to Fannie Mae, urging the government-controlled mortgage giant to stop working with so-called “foreclosure mill” law firms under investigation for document fraud.

“Why is Fannie Mae using lawyers that are accused of regularly engaging in fraud to kick people out of their homes?” the lawmakers wrote.

A Fannie Mae spokesman said the company is reviewing the issue.

JPMorgan acknowledged Wednesday that its employees signed some affidavits about loan documents without personally verifying the files. These affidavits verifies the accuracy of the loan information, including who owns the mortgage.

JPMorgan spokesman Kelly said the bank believes the information in the affidavits is accurate, and that the affidavits were prepared by “appropriate personnel.”

The bank asked judges not to enter judgments against homeowners facing foreclosure until it completes its review of the problem. JPMorgan expects the process to take a few weeks.

And this from the WSJ:

Chase Suspends Foreclosures

By ROBBIE WHELAN

J.P. Morgan Chase & Co., acknowledging that there could be irregularities in documents it filed related to foreclosures, said it is halting foreclosures until a review of its document-filing process is completed.

The company said the move affects 56,000 home loans that are currently in some stage of the foreclosure process. However, it says the number of cases under review could grow.

“It has come to our attention that in some cases employees in our mortgage foreclosure operations may have signed affidavits about loan documents on the basis of file reviews done by other personnel — without the signer personally having reviewed those loan files,” said Tom Kelly, a Chase spokesman. “As a result, we have begun to systematically re-examine documents we have filed in current foreclosure proceedings to verify that the affidavits and other documents meet the standard of personal knowledge or review where that is required.”

The announcement comes amid widespread concern in the mortgage-serv icing industry over so-called “robo-signers”—employees of the servicing companies that sign hundreds of affidavits related to foreclosure filings each day without properly reviewing the files associated with each case.

Read more

This entry was posted in Banking and foreclosures.
 

Tags: , , , , ,

Leave a Reply

 
 
  1. lisa seri

    October 14, 2010 at 9:22 am

    how can we find out if we are on the list of possible fraudulent foreclosures?

     
  2. baton rouge short sale

    January 9, 2011 at 10:38 pm

    Falling property values and unemployment near 10 percent have spurred a surge in foreclosures. The number of homes offered in foreclosure auctions averaged 110,000 a month in the third quarter compared with about 98,000 in the same period a year earlier, said Mark Fleming, CoreLogic’s chief economist.