When lenders, mortgage servicers or mortgage document companies engage in wrongful conduct regarding mortgage/foreclosure documents, it can result in consumers suffering great harm. Such wrongful conduct can sometimes even result in unlawful foreclosures. No consumer should have to face a wrongful foreclosure because a lender, mortgage servicer or mortgage document company engaged in wrongful document-related practices.
Recently, a case involving allegations of wrongful conduct regarding mortgage/foreclosure documents has arisen in Illinois. The case involves a mortgage document company based in Palm Harbor, Florida. The company reportedly prepares mortgage/foreclosure documents for lenders and mortgage servicers. According to the Reuters article which reported this story, eight of the 10 biggest lenders and mortgage servicers receive document services from this mortgage document company.
Illinois’ attorney general has accused the mortgage document company of having engaged in wrongful document-related conduct. Specifically, the attorney general alleges that employees of the company engaged in robo-signing when it came to mortgage/foreclosure documents. This alleged robo-signing allegedly included things like signing documents under false job titles and signing documents without reviewing them.
A lawsuit has been brought in a court in Illinois by Illinois’ attorney general against the mortgage document company in connection to these allegations. This lawsuit reportedly is asking that civil penalties be leveled against the company. The lawsuit also reportedly is seeking to have the company be ordered to conduct a review of the documents it has prepared and fix those documents which were affected by the alleged robo-signing.
Wrongful document-related conduct like that alleged in this case can cause great harm to consumers. Thus, one hopes that lenders, mortgage servicers and mortgage document companies are held accountable when they engage in wrongful document-related conduct.
Source: Reuters, “Illinois accuses mortgage firm of robosigning,” Aruna Viswanatha, Feb. 2, 2012