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FT.com / Companies / Banks - Wells adds to crisis over home seizures
The US mortgage foreclosure crisis deepened as it emerged that Wells Fargo may have used practices that prompted rivals to halt home repossessions, and JPMorgan Chase said banks might be fined over the issue.

Bank of America, JPMorgan and GMAC have halted foreclosures after learning that "robo signers" had rubber-stamped thousands of mortgage documents without checking their accuracy. Attorneys-general in 50 states have launched a joint investigation into the matter.
More FT video

Jamie Dimon, JPMorgan chief executive, on Wednesday became the first top banking executive to say some attorneys-general may levy penalties on banks for their foreclosure practices.

Legal documents obtained by the Financial Times suggest that Wells Fargo, the second-largest US mortgage servicer, also used a "robo signer". Unlike its rivals, Wells Fargo has not halted foreclosures. The San Francisco-based bank said on Tuesday it was reviewing some pending cases, but it has maintained that it has checks and balances designed to prevent serious procedural lapses.

In a sworn deposition on March 9 seen by the FT, Xee Moua, identified in court documents as a vice-president of loan documentation for Wells, said she signed as many as 500 foreclosure-related papers a day on behalf of the bank.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Thu Oct 14th, 2010 at 05:55:00 AM EST
[ Parent ]
This should probably read

Wells Fargo may have used practices that prompted rivals to "halt" home repossessions

According to Naked Capitalism

GMAC announced a foreclosure halt in all 50 states; JP Morgan and Bank of America have stopped in 23 judicial foreclosure states.

Or have they? Florida is a judicial foreclosure state, and local reports suggest the banks are pressing forward with foreclosures. Note the inconsistencies between the statements of the bank employees versus the action on the ground.

by gk (gk) on Thu Oct 14th, 2010 at 06:10:14 AM EST
[ Parent ]
No surprise in Florida. A bank friendly state government and friendly judges have created "Kangaroo" foreclosure courts that allow 90 seconds for the defendants to make their case, according to one report I posted previously.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Oct 14th, 2010 at 09:42:58 AM EST
[ Parent ]
Thinking about this from another direction, I think about my dad's office building. For years he had the mortgage with banks that kept getting bought out, eventually turning into CitiBank. They have routinely told him to forget it when he asks them for loans to do such things as repair the roof.

But, odds are that the fobbed off the original loan, or it was fobbed off long before Citi came in. As a person with a record of decades of good payment, his was probably sold with packages of trash loans to balance them out.

Citi could straighten it all out by giving him a new loan...which he wants since it would give him lower payments at a time when 3 different clients have run out on their leases over the last year, leaving a basically empty building except for the lessee who hasn't paid in two years...but he has been paying the mortgage out of his savings.

Citi could get a new clean note, my dad would get a lower payment, everyone happy. Are they that clever. No. They won't even consider giving him a new loan.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Thu Oct 14th, 2010 at 07:15:00 AM EST
[ Parent ]

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