Q: What is "robo-signing?"
A:In the foreclosure industry, robo-signing is the practice of a bank employee signing thousands of documents and affidavits without verifying the information contained in the document or affidavit. Some reports have revealed that one bank official performed the Herculean task of signing off on almost 10,000 documents in one month. The practice calls into question the validity of thousands of mortgage foreclosures across the country. When the practice recently came to light, four major banks, J.P. Morgan Chase, Ally Financial/GMAC, Bank of America and Wells Fargo all called a halt to foreclosure actions in 23 states. In the days following their announcements, Bank of America ceased foreclosures in all 50 states. A coalition of 40 attorneys general plan on launching a probe into mortgage-servicing practices and may hold them accountable where there were violations of state foreclosure laws.
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