It has been the biggest — and perhaps murkiest — legal story of the last two weeks: At least four major lenders have halted foreclosures, citing the need to review whether their mortgage documentation is in order and in compliance with court rules in the 23 states that require court approval before a foreclosure can take place. Bank of America, the largest U.S. bank, announced Friday that it was halting foreclosures on homes in all 50 states.
The decisions by the lenders — JPMorgan Chase, BofA, Ally Financial Inc. and PNC Financial Services — have spotlighted tiny law firms that act as so-called “foreclosure mills” and the practice among lenders of hiring “robo-signers,” people who sign tens of thousands of documents per month, according to The Wall Street Journal and The Washington Post.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]