Every day the anger against banks is stronger. It seems like banks can do what they want, when they want, and how they want, with no consequences. They make risky bets, they get bailed out by taxpayers. They get involved in bad loans, and aren’t required to modify loans. It seems like at every turn they get a pass, mounting more evidence that banks can do what they want.
The latest piece of evidence is deals with the robo-signing phenomenon that came to light at the end of last year. For those that don’t know, all the big banks put foreclosure proceedings on hold after members of their staff admitted in court that they signed documents without reading them. These signatures became known as robo-signings as hundreds of these documents would be signed every hour. A big stink was made of the whole thing and industry was supposed to have this under control.
However, an AP report, shows that the practice is continuing. County Court Clerks in Michigan and North Carolina reported receiving hundreds of forged or robo-signed documents since this debacle was supposed to be ended. In fact, the same people who testified in courts signatures are the ones still showing up. The continued forged signatures no longer simply apply to foreclosures either. The report mentions that the documents included transfers of loans and documents certifying a loan had been paid off. So not only was the practice not stopped it has continued in other aspects of loan documents.
Despite settlements that were supposed to curb this practice, it is still in existence. So much so that Guilford County, NC they have stopped taking questionable documents. All this is more evidence that banks can and will do what they want. Hopefully, on July 21, when the CFPB goes live, they can curb this lack of ethics coming from the banks.