Bank 'Foreclosure Experts' Couldn't Define 'Mortgage'

Workers with no experience or training signed paperwork
By Rob Quinn,  Newser Staff
Posted Oct 13, 2010 5:36 AM CDT
Bank 'Foreclosure Experts' Couldn't Define 'Mortgage'
A foreclosed home is seen for sale in Sacramento, Calif.    (AP Photo/Rich Pedroncelli, file)

(Newser) – Work experience as a hair stylist or at Wal-Mart was good enough to get you hired as a "foreclosure expert" at financial institutions rushing through thousands of foreclosures, a Florida court heard yesterday. A lawyer defending thousands of homeowners produced depositions from mortgage company workers who testified that they had been put to work signing foreclosure paperwork without being given formal training. Some of them said they barely knew what a mortgage was.

"I don't know the ins and outs of the loan, I just sign documents," testified one "foreclosure supervisor" who couldn't define basic terms. Some workers said they knew they were lying when they signed foreclosure affidavits, reports the AP, which notes that the testimony is going to make it harder for banks to portray "robo-signing" as an isolated problem. The lawyer says he will make the testimony available to a multi-state probe of the mortgage-servicing industry. (And it's wild that underwater homeowners are even paying their mortgages, writes Brett Arends; click here for his interesting take on things.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X