JPMorgan expands review of foreclosures to 41 states, doubles number of cases to 115,000

Washington Examiner ^ | 10/13/10 5:13 PM EDT | Associated Press

[Ernest_at_the_Beach]

NEW YORK — JPMorgan Chase is expanding its review of foreclosures to 41 states as pressure builds on banks to answer allegations of document fraud.

The bank is now reviewing about 115,000 foreclosure cases, up from 56,000, Douglas Braunstein, chief financial officer for JPMorgan Chase & Co., said Wednesday. JPMorgan had stopped proceedings in the 23 states that require judicial review of foreclosures and now is looking into similar deals in states where there "could possibly be an issue," spokesman Joseph Evangelisti said.

The bank acted in response to evidence that mortgage lenders have used flawed court papers to evict homeowners.

Bank officials also said JPMorgan had previously stopped using the banking industry's controversial electronic mortgage tracking system for foreclosures in 2007 and 2008. The bank still uses the system, known as MERS, for other loan purposes.

Lawyers in class-action lawsuits have argued that MERS — which allowed financial institutions to do away with paperwork in favor of electronic tracking — lacks the required paper trail to prove mortgage ownership.

The news of an expanded probe came just as officials in 50 states and the District of Columbia announced a joint investigation into allegations that mortgage companies used illegal methods in dealing with foreclosure documents that were used to evict people from their homes. The probe will examine whether mortgage company employees made false statements and whether they prepared foreclosure paperwork in a fraudulent manner.

The foreclosure mess has escalated in the last month.

[Ernest_at_the_Beach]

AND:

Maine's attorney general joins 50-state home foreclosure investigation

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San Francisco Examiner / 8hrs 30mins ago

AUGUSTA, Maine — Maine Attorney General Janet Mills says the 50-state investigation of so-called "robo-signing" of home Foreclosure documents brings about answers to a national Scandal that "affects peoples' homes, the stability of our families and our local economy." On Wednesday, Maine and 49 other states and the District of Columbia launched the investigation into allegations that Mortgage companies mishandled documents and broke laws in thousands of Foreclosures.

[Ernest_at_the_Beach]

Related thread:

Legal Heat On Robo-Signing Stokes Foreclosure Fiasco - Attorneys General of all 50 states......

[Kartographer]

If there wasn't a serious problem these banks wouldn't be running scared and neither would the Title Insurance Companies. This is a truly a case of where there's smoke there's fire.

[Ernest_at_the_Beach]

Related thread:

How 2 civilian sleuths brought foreclosure problems to light

[Marine_Uncle]

Why do I sense there are going to be many lawyers making out well in this crisis. I am wading through the many posts and cross postings on this issue. I have been pretty much in the dark on the issue until now.

[Ernest_at_the_Beach]

It has not been clear at all just what was going on.

But to have AG's from all 50 states getting together indicates something.

[Marine_Uncle]

"But to have AG's from all 50 states getting together indicates something."
Roger that. Bunch of damn crooks most likely. It is all so sad. And we shall read about a lot of folks that should not being booted out of their homes having to go through the agonies associated.
I am sure the Feds and State will keep it down as to how laws in place pressured loaners to go along with the flow in giving homes away... Must not allow for the Dodds and Franks and Walters etc.. to in any way become associated as how the FM and FM etc., gave the farm away along with the big banks that where forced into bad lending practices in the first place. At any rate, I will try to stay tuned.