I Predicted the Mortgage Fraud Crisis

I predicted the foreclosure crisis.  No, really, I did.  Let me tell you my story.

I’ve worked for a number of the large banks that you have heard of.  Probably too much in fact.  I was fired from a job at one investment bank after a few months of butting heads with my new boss.  He was a real idiot and very full of himself, and I refused to kiss his ass.  Call it pride, I call it dignity.  Within 3 weeks I had a job at a commercial bank, in their wholesale mortgage lending division. It was my first time working in this kind of banking institution and I was up for a change of pace from working in Manhattan. I can safely say that it was at Washington Mutual (now part of Chase) in an office park on Long Island. There was one large, very open room filled with people all processing mortgage applications. I don’t even know how many people worked there because it was not a warm and friendly place.  […]

Decoding the Robo-Signing Foreclosure Freeze Mess

Decoding the Robo-Signing Foreclosure Freeze Mess

On October 11, bowing to increased pressure from state attorney generals about fraud within the foreclosure process, Wells Fargo, Chase and PNC Financial halted foreclosures in 23 states.  Bank of America, the nation’s largest bank, went one step further and temporarily halted all foreclosures across the country.

The allegations against these banks were that they skirted the judicial process in states that required a judicial review of foreclosures.  This means that banks and their legal representatives had to certify that the documents presented were accurate and had been verified before being sent through the legal system for foreclosure.  It was revealed that instead of actually reading and signing the documents, some individuals were essentially hired just to sign documents and certify that they were true on behalf of the banks.  These individuals have been referred to as “robo-signers” and were often tasked with signing hundreds of documents each day.  Robo-signing accounted for many of the horror stories that you may have heard where banks foreclosed on the wrong house. […]