Friday, February 24, 2012

“The system is broken”

The Federal government may be turning a blind eye to Mortgage Industry jankiness, but at least local officials aren’t.
Last week, San Francisco Assessor-Recorder Phil Ting released a report documenting that 85% of the nearly 400 foreclosures that his office has audited have “serious problems or were outright illegal".
"We really wanted to take a look at what the documents would tell us and whether or not it was something systemic," Ting said. "We had a lot of anecdotal information but never knew if the problems represented 5 percent or 20 percent or 80 percent of the cases. What we have for the first time is hard data about the level of systematic problems going on in the mortgage industry."
-Huffington Post
Ting joins a small handful of other local officials who have, over the past year, gone public with similar findings.
Earlier this month, after federal officials conducted more than 10,000 hours of research and poured through more than 2 million documents, the Obama Administration and 49 state attorneys general announced a $25 billion settlement with five of the nation's largest banks that had gotten caught committing document fraud and wrongful foreclosures on homeowners.
None of the findings from that research have been released to the public.
As hard as it may be to fathom, it is very likely that systemwide fraud may just be the tip of the iceberg...