Lilliputians Rise Up Against Banking Overlords
By: Cynthia Kouril Friday June 18, 2010 12:25 pm
American Banker has an article out that is a must read. It is chock a block with so much information that I could not relay it all to you and still stay within the bounds of Fair Use. Some of the highlights:
1) “In February, the Florida state Supreme Court set a new standard stipulating that before foreclosing, a lender had to verify it had all the proper documents. Lenders that cannot produce such papers can be fined for perjury, the court said.”
2) The Florida Attorney General has opened an investigation into ”whether Docx, an Alpharetta, Ga., unit of Lender Processing Services, forged documents so foreclosures could be processed more quickly.” Docx and Lender Processing services are document mills, ahem, I mean, mortgage servicers.
3) “Lender Processing Services disclosed in its annual report in February that federal prosecutors were reviewing the business processes of Docx.”
4) Judge J. Michael Traynor, “a state judge in Florida ordered a hearing to determine whether M&T Bank Corp. should be charged with fraud after it changed the assignment of a mortgage note for one borrower three separate times.” [emphasis added].
5) “In Florida, Georgia, Maryland and other states where the foreclosure process must be handled through the courts, hundreds of borrowers have challenged lenders’ rights to take their homes.”
Firepups, we’ve been waiting for the villagers to take to the streets with torches and pitchforks. Instead they have taken to the courts with legal defenses and counterclaims. They are rising up against their banking overlords. more