Banks Slash $50
billion off debt owed by borrowers with "robo-signed"
Under a national mortgage
settlement agreement with the US government and
49 states reached in 2012, four of the nations
five biggest banks have slashed debt for over
600,000 borrowers whose loan documents were
improperly verified and fraudulently signed by
so called robo-signers. The relief came in the
form of reduced mortgage balances, loan
modifications, and allowing homeowners to sell
or refinance their homes for less than was owed.
are mortgage lending company employees who
signed off on mortgage and foreclosure documents
without reviewing them, as the law requires.
Joseph Smith, the monitor overseeing the
settlement credited Bank of America with $9.61
billion covering 317,028 loans; Wells Fargo
provided $4.57 billion on 122,719 loans; Chase
provided $4.46 billion on 125,553 loans, and
Citi provided $1.79 billion, covering 58,822
Chase said in a report the bank had forgiven an
average $121,000 in principal for homeowners
with first mortgages.
According to a report in
Yahoo Finance, Smith said he will continue
to monitor mortgage-servicing practices under
other agreements with some states.
For more on this,
See our list of robosigners including signatures,
depositions and court cases.
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