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National mortgage Settlement is a game-changer

February 17, 2012
Mortgage Lending
"Rampant, Pervasive Fraud"

Maryland's AG, Doug Gansler, gives a quick overview of the national mortgage settlement, noting that "this is just a down payment by the national banks," not the end of the story.

As foreclosures mounted in recent years, the mortgage servicing industry often responded with illegal shortcuts, illegal fees and incompetent management. The situation became so bad that our nation's attorneys general (AGs) joined forces with federal agencies to take action against "robo-signing" and other loan servicing abuses by the nation's largest banks. The result is a legal settlement that is likely to end massive robo-signing practices and keep more families in their homes.

Help for Homeowners

Wondering if you qualify for help under the National Mortgage Settlement? The AGs provide information and resources for homeowners here.

The "robo-signing" scandal first surfaced in the media during the fall of 2010 when a lawsuit filed in Maine highlighted that many big banks and other loan servicers don't actually review foreclosure documents they submit to courts. Instead they simply rubber-stamp key documents or have employees blindly sign hundreds or even thousands of documents a day.