‘Put-Backs,’ ‘Robo-Signers’ Put New Pressure on US Housing Market

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I’m Alex Villarreal with the VOA Special English Economics Report, from voaspecialenglish.com | http Since January, lenders have seized or begun the process to seize about two million American homes. In September alone, banks and other financial companies reclaimed over one hundred thousand properties because of unpaid loans. That was the most yet since the housing collapse that led to the recent recession. Now, efforts to speed a housing recovery have hit new problems. These include questions about whether banks have acted unlawfully in reclaiming some homes. Reports of abuses have grown with talk lately of “robo-signers.” These are employees who sign foreclosure forms without taking the required legal steps or even reading the paperwork. They simply act like robots. In some cases, documents may have been falsified. In October, the top law enforcement officials in all fifty states announced an investigation of big servicers of home loans. Servicers receive the payments from borrowers and might also hold the loans. Among the targets of the attorney-general investigations are Bank of America, JP Morgan Chase and Ally Financial. An Ally employee admitted robo-signing thousands of foreclosures each month.The Obama administration has launched its own investigation. But the administration has not supported the idea of a temporary suspension of all foreclosures. Officials say this could endanger the slow economic recovery. Twenty-three states require a court to approve a

1 Comments For This Post

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