0 votes

Oh No! Foreclosure Documents Scandal Could Threaten Big Banks, Hurt US Homeowner Program

Report: Foreclosure mess could threaten banks

WASHINGTON (AP) -- The disarray stemming from flawed foreclosure documents could threaten major banks with billions of dollars in losses, deepen the disruption in the housing market and hurt the government's effort to keep people in their homes, according to a new report from a congressional watchdog.

Revelations that several big mortgage issuers sped through thousands of home foreclosures without properly checking paperwork already has raised alarm in Washington. If the irregularities are widespread, the consequences could be severe, the Congressional Oversight Panel said in a report issued Tuesday. The full impact is still is unclear, the report cautions.

Employees or contractors of several major banks have testified in court cases that they signed, and in some cases backdated, thousands of certifying documents for home seizures. Financial firms that service a total $6.4 trillion in mortgages are involved, according to the new report. Big banks including Bank of America Corp., JPMorgan Chase & Co. and Ally Financial Inc.'s GMAC Mortgage have suspended foreclosures at some point because of flawed documents.

http://finance.yahoo.com/news/Report-Foreclosure-mess-could-...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
fireant's picture

AP -- Johnny on the spot

yawn

Undo what Wilson did

Good!

"Threatened" is a good start.
Complete bankruptcy and closing of the offending banks will be much better.

And plenty of jail time for the bankers is necessary.
They are clearly a danger to society.