Wells Fargo adds to crisis over home seizures

Discussion in 'Wall St. News' started by ASusilovic, Oct 14, 2010.

  1. The US mortgage foreclosure crisis deepened as it emerged that Wells Fargo may have used practices that prompted rivals to halt home repossessions, and JPMorgan Chase said banks might be fined over the issue.

    Bank of America, JPMorgan and GMAC have halted foreclosures after learning that “robo signers” had rubber-stamped thousands of mortgage documents without checking their accuracy. Attorneys-general in 50 states have launched a joint investigation into the matter.

    Jamie Dimon, JPMorgan chief executive, on Wednesday became the first top banking executive to say some attorneys-general may levy penalties on banks for their foreclosure practices.

    Legal documents obtained by the Financial Times suggest that Wells Fargo, the second-largest US mortgage servicer, also used a “robo signer”.

    Unlike its rivals, Wells Fargo has not halted foreclosures.

    The San Francisco-based bank said on Tuesday it was reviewing some pending cases, but it has maintained that it has checks and balances designed to prevent serious procedural lapses.

    In a sworn deposition on March 9 seen by the FT, Xee Moua, identified in court documents as a vice-president of loan documentation for Wells, said she signed as many as 500 foreclosure-related papers a day on behalf of the bank.

    Ms Moua, who was deposed as part of a foreclosure lawsuit in Palm Beach County, Florida, said that the only information she verified was whether her name and title appeared correctly, according to the document.

    Asked whether she checked the accuracy of the principal and interest that Wells claimed the borrower owed – a crucial step in banks’ legal actions to repossess homes – Ms Moua said: “I do not.”


    ROFL ! LMAO ! :D :D :D
  2. Market doesn't care about anything negative.

    It's all about the free dollars.
  3. That´s my point. Maybe I should a apply for a $1 billion credit line and nobody will actually read it. RoboSigner will do the job. :D
  4. achilles28



    Consumer debt-to-equity gets a reprieve through halted foreclosures (no mortgage payments) and the Fed delivers TARP#3 to banks. Short dollar, long stocks/commodities. Super for gold.
  5. It is also handy way to get rid of surplus properties. May turn out they are worth 0 as no buyer want to risk legal consequences and have no owner. So, cant be bought, sold rent and best solution is to demolish :D

    well thought out in advance. 100% loss for lender, if required. Financial version of extortion :cool:
  6. AK100


    Talk about Karma for the banks, this joke is hilarious but sadly all too true.
  7. Doesn't anyone remember the last QE? QE2 means another trashed $USD and stocks, gold, and bonds will most likely go up. It's not rocket science.

    Question Authority. Vote Independent. Think for yourselves.

    Until we get rid of the Fed and the Bilderberg candidates this will never end.
  8. I recall flash crash number 1, too...:cool:
  9. History doesn't change much, whether its tulip bulbs, dot com stocks, the housing market.........
  10. - 5 %, nice start...:cool:
    #10     Oct 14, 2010