Time is money; everyone knows this. However, when banks and lending institutions fell pray to this mantra over the last two decades, they began employing an array of slapdash practices, including automatically generated signatures on unreviewed documents which can be encompassed by the term “robo signing,”
With the credit crunch and ensuing economic turmoil, many financial institutions found themselves in hot water, scrambling to locate and validate forms that were improperly produced. Lenders and trusts across the board are now being accused of robotically signing hundreds of thousands of mortgage loans, notes, and affidavits, simultaneously overlooking the notary requirement.
As a result, some institutions have allegedly been robotically pursuing foreclosure proceedings against mortgages that they do not even own and for which they cannot produce legally obtained notes. Consequently, many homeowners are unaware of who even owns their mortgage, who should be repaid, and are therefore facing a foreclosure nightmare.
At the end of 2010, both JP Morgan and Bank of America were forced to suspend mortgage foreclosures across half the country. Most recently, Wells Fargo has been accused of forging mortgage documents in Nevada; a state where the Supreme Court has issued a rash of homeowner-favored rulings in recent months.
Across the nation, banks big and small are entangled in lawsuits and mediations that could have been avoided had they been willing to invest their valuable time in implementing a more effective document management system like docStar. Rather than pursuing illegal robo-signing activities that ultimately lead to incredible financial losses, banks and lending agents must focus their energy on properly ascertaining documents in order to survive.