BLOOMBERG | No Breaks for Robo-signing Computer Stamping Mortgage Documents

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BLOOMBERG | No Breaks for Robo-signing Computer Stamping Mortgage Documents

BLOOMBERG | No Breaks for Robo-signing Computer Stamping Mortgage Documents

EXCELLENT JOB! Now this is what I am talking about…no affidavits…it’s the “assignments”, the destroyed notes, the Break in Chain, the E-Signatures, no supervision!

Bryan Bly is a pen-wielding “robo- signer” at Nationwide Title Clearing Inc., inking his name on an average 5,000 mortgage documents a day for companies such as Citigroup Inc. and JPMorgan Chase & Co.

Those are just the ones that cross his desk.

Nationwide Title employs a computer system that automatically inserts a copy of Bly’s signature on thousands of digital files that he never sees. The system even affixes an electronic notary seal.

“The problem with the way these documents are created isn’t because a computer is used,” said Gloria Einstein, a legal aid attorney in Green Cove Springs, Florida, who deposed Bly in a case in a which her client faces foreclosure by a unit of Deutsche Bank AG. “It’s because an enterprise has decided to use a computer to create a system where nobody is responsible for the information and the decisions.”

The rush to securitize more than $4 trillion of mortgages as U.S. home sales peaked in 2005 and 2006 inundated loan servicers and contractors like Palm Harbor, Florida-based Nationwide Title that help them handle paperwork. Lawsuits fighting some of the more than 4 million foreclosures since then have exposed sloppy recordkeeping and raised questions about the validity of documents used to seize properties.

Signatures Draw Scrutiny

Bly is just one of more than a dozen robo-signers deposed in the past two years by lawyers for borrowers seeking to block foreclosures. Spurred by descriptions in depositions of employees signing thousands of affidavits a week without checking their accuracy as legally required, the attorneys general in all 50 states last month opened an investigation into whether banks and loan servicers used faulty documents or improper practices to foreclose.

Nationwide Title, which has about 175 employees, provides document imaging, tracking, retrieval, recording and processing on bulk loan transfers for lenders, servicers and investors. It’s the largest third-party processor of mortgage assignments, handling more than 350,000 last year, Senior Vice President Jeremy Pomerantz said in a telephone interview. The company also prepares lien releases, which show that a mortgage has been paid off by the borrower.

Assignments, which are usually recorded with county land record departments, list the buyer and seller of a loan as it’s sold or packaged with other loans into a mortgage-backed security. Lawyers for homeowners are challenging the legitimacy of the documents, which are relied on by lenders to show they have the right to foreclose.

Batches of 30,000

(While closely held Nationwide Title in the past offered a package of foreclosure-specific services, it had just one client, Pomerantz said. The company doesn’t handle foreclosure affidavits — submitted by banks to assert ownership of a loan when they’ve lost the promissory note or to show that borrowers are in default — and often it doesn’t know when clients are requesting documents for defaulted loans, he said.)

Nationwide Title’s proprietary system isn’t entirely automated, said Erika Lance, senior vice president of administration. Employees receive requests from clients for lien releases and mortgage assignments, which are often sent in batches of as many as 30,000. They review the information and images of loan documents sent along with the request, and the information is keyed into the computer system.

The computer system fills in the electronic assignments in the format and wording each county requires, and places a signature and notary seal from a list of employees approved by each bank. Bly and other signers are given a title at the bank requesting the documents, such as “vice president” or “assistant secretary,” depending on what the individual counties require, Lance said.

Laws Catching Up

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6 Responses to “BLOOMBERG | No Breaks for Robo-signing Computer Stamping Mortgage Documents”

  1. dpreston says:

    I have discovered thousands of such assignments. Just look in broward and palm beach county records in florida all through 2009. They r everywhere. How does a guy who lives in a trailer with an IQ of about 6, sign hundreds of thousands of documents as attorney in fact for anyone? If any of us did that we would be in federal prison. This must be stopped. Someone MUST go after the big guys from NTC. How about W ross for example? He owns insurance companies all the way to lime lite. How about hagerty? He is partners with Ross all the way through LPS, FINS, FIS etc. This is no big mystery as it already happened in 2008. All the pools-they forgot a major major process- like recording all the mortgages! How about the banks not doing MODS? Why? They can’t because they don’t own them and have to buy them back from the pools. Why is LPS doing the mods (they take 15 seconds) per lps’s own website… Why are the same people making the credit scores, doing the initiations, mods, foreclosures and then they liquidate them too? Cmon people dig deeper. Think bigger- this major GLOBAL crimes. It not that hard- IT ALREADY HAPPENENED!!! D preston

  2. robowhacker says:

    And does anybody know just who the ONE CLIENT was?

  3. QUESTION: WHY WON’T OFFICIAL BANK EXECUTIVES SIGN OFF ON THESE DOCUMENTS AND AFFIX THE REAL CORPORATE SEALS TO RELEVANT, NECESSARY LEGAL DOCUMENTS IN FORECLOSURE?

    Legal liablity and exposure to perjury, fraud and conspiracy?

    Can any attorneys answer this question?

  4. wbt007 says:

    I have an affidavit of lost note prepared by Fretwell and executed by Moore and notarized by Bly; so why does their boss say NTC does not handle foreclosure affidavits? The affidavit says Moore has personal knowledge and is a VP of Saxon Mtg.

    (While closely held Nationwide Title in the past offered a package of foreclosure-specific services, it had just one client, Pomerantz said. The company doesn’t handle foreclosure affidavits — submitted by banks to assert ownership of a loan when they’ve lost the promissory note or to show that borrowers are in default — and often it doesn’t know when clients are requesting documents for defaulted loans, he said.)

  5. Paula says:

    This is one of those cases that will change how things are handled in the mortgage and banking industry for the future, but I believe targeting one company, Nationwide Title Clearing, as somehow doing something illegal or wrong is itself wrong. This is an industry-wide practice. Ultimately though this matter is between the borrowers who borrowed the money and the banks that lent the money that needs to get sorted out.

    My solution? I’d like to see all banks offer a 1 time ‘good will’ reset of mortgages to a reasonable interest and principle amount, wipe out all the ‘past due’ stuff to show good will and expect the same from the home owner. And then if the owner defaults after that a quick, sorry you’ve used all your options up, foreclosure. Fair all the way around.

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