Justice Department Probing Foreclosure Processes

Discussion in 'Wall St. News' started by ASusilovic, Oct 7, 2010.

  1. The U.S. Justice Department said on Wednesday it was probing reports that the nation's top mortgage lenders improperly evicted struggling borrowers from their homes as part of the devastating wave of foreclosures unleashed by the financial crisis.

    Attorney General Eric Holder said the Justice Department would look into media reports that loan servicers improperly have used "robo-signers" to process foreclosure orders, stepping into a controversy that has forced at least three banks to halt eviction proceedings and prompted calls for an industry-wide moratorium on home repossession until the problems are fixed.

    The move, coming before November's congressional elections, takes aim at one of the most visible signs of the U.S. economic crisis, which saw hundreds of thousands of families lose their homes.

    But it could risk further slowing the fragile U.S. economic recovery, leaving banks unsure about whether they will ever claw back their losses and the struggling housing market overshadowed by a mounting inventory of homes still likely to face foreclosure in future.


    Main street against Wall Street.
  2. Joke inside : if a banker is fired it makes +1 in unemployement stat... but if he goes to jail, how does it impact the stat ?