( – promoted by buhdydharma )
Don’t worry, they have full control of the situation. It’s okay if the paperwork is in order. Really.
“It is a serious problem,” said David Axelrod, who contended that the flawed paperwork is hurting the nation’s housing market as well as lending institutions. But he added, “I’m not sure about a national moratorium because there are in fact valid foreclosures that probably should go forward” because their documents are accurate.
Axelrod said the administration is pressing lenders to accelerate their reviews of foreclosures to determine which ones have flawed documentation.
“Our hope is this moves rapidly and that this gets unwound very, very quickly,” he said.
Attorneys general in about 40 states may announce as early as this week a joint investigation into potentially faulty foreclosures at the largest banks and mortgage firms, Bloomberg News reported on Oct. 8, citing a person with direct knowledge of the matter. The investigation may center on claims that employees at home lenders and loan servicers signed court documents without ensuring the information was accurate.
Bank of America, JPMorgan Chase & Co. and Ally Financial Inc. have already frozen foreclosures in 23 states where courts supervise home seizures, amid allegations that employees used unverified or false data to speed the process. Litton Loan Servicing LP, a mortgage-servicing business owned by Goldman Sachs Group Inc., said last week it’s halting some foreclosures to review how they’re handled.
Senate Majority Leader Harry Reid, a Democrat from Nevada, urged other banks and mortgage firms to follow Bank of America’s lead and “review their practices to ensure that they are not unfairly targeting homeowners in Nevada and across the nation,” according to a statement last week.
House Minority Whip on Fox News
People have to take responsibility for themselves.