After GMAC, Ally, JPMorgan Chase, and Bank of America publicly admit they have a credibility gap (to put it nicely), they only agreed to stop foreclosures in the minority of states where foreclosures require judicial approval. As long as they can hide their problems, they don’t exist? More like they don’t think their massive document fraud will come to light in non-judicial states. Well even the Texas Attorney General, who has done next to nothing throughout this crisis, has a problem with the servicers on their arbitrary distinction between judicial and non-judicial states.
In his letter, [the Texas AG office] described possible fraudulent practices by lenders, including signing thousands of documents per months, often without reading them; signing affidavits falsely claiming personal knowledge of facts or falsely claiming the signing party reviewed attached documents; and notarizing documents prior to their signing or when the signer was not present.
Texas Attorney General Office, as reported by AP (Houston Chronicle article).
Of course, if loan servicers were cutting all the corners in judicial states, they almost certain to be doing anything they wanted in non-judicial states. Time will tell. Of course, given the lack of respect the financial industry has about everyone, I have doubts loan servicers will stop foreclosures, or take serious measures to address the underlying problems with their systems — their fraudulent practices are just too deep and extensive.
