Foreclosure Fraud: “Burger King Kids” Signed Foreclosure Papers
Carlo Gabriel Simbajon
They are called “Burger King Kids” – workers with high school educations and with little or no experience in handling mortgages and foreclosures. In the latest twist in the ongoing foreclosure fraud scandal, these “robo-signers” have allegedly been signing foreclosure affidavits since 2007. According to reports from the New York Times and CTV News, mortgage companies like JPMorgan Chase (NYSE:JPM) employed inexperienced walk-in hires who “barely knew what a mortgage was.”
According to CTV News, an avalanche of home foreclosures in 2007 required US financial institutions and their mortgage departments to hire “hair stylists, retail workers and people who had worked on assembly lines” to handle homeowners’ papers even though they did not have any formal training.
In court papers released Tuesday, many of these employees admitted barely having knowledge on what a mortgage was. Some didn’t even know the words “affidavit,” “complaint” and “personal property,” CTV reported. Worst, some admitted they knew they were lying when they signed foreclosure documents. An employee of loan servicing arm of Goldman Sachs (NYSE:GS) said “I don’t know the ins and outs of the loan, I’m not a loan officer.”