Texas Attorney General Greg Abbott today called for a halt to foreclosures in the state so mortgage lenders and loan servicers could conduct a thorough review to determine if “robosigners” were used in foreclosure processing.
A “robosigner” refers to an employee or agent who signed off on hundreds or thousands of foreclosure documents in a short amount of time, essentially proving they didn’t do their due diligence or follow protocol.
They have also been accused of signing affidavits which falsely claim personal knowledge of facts, or that they reviewed the attached documents when in fact they failed to do so.
Additionally, there have been accusations that robosigners notarized documents prior to getting the signature, and/or when the signer was not present.
All this, of course, led to widespread mistakes and errors, which put a halt on foreclosures in 23 states (minus Texas) for Ally Financial, Bank of America, and Chase.
Both the California AG and Connecticut AG have called for similar foreclosure freezes.
The foreclosure suspension letter was sent to 30 lenders, including:
American Home Mortgage Servicing, Inc.
American General Finance, Inc.
AmTrust Mortgage Corporation
Aurora Loan Services, Inc.
Bank of America
Carrington Mortgage Services, LLC
JP Morgan Chase & Co.
EMC Mortgage Corporation
First Horizon National Corp.
Ally Financial, Inc./GMAC Home Loan Services
HomEq Servicing, Inc.
HSBC North America Holdings, Inc.
Litton Loan Servicing, Inc.
MGC Mortgage, Inc.
Midland Mortgage Company
National City Mortgage c/o PNC Financial Services Group, Inc.
Nationstar Mortgage Company
Ocwen Loan Servicing, LLC
OneWest Bank Group LLC
PHH Mortgage Services Corporation
Saxon Mortgage Services, Inc.
Select Portfolio Servicing, Inc.
Vanderbilt Mortgage and Finance, Inc.
Wells Fargo & Company
Wilshire Credit Corporation