A wave of lawsuits has fallen upon several mortgage companies that participated in questionable practices which inevitably caused the housing market to crash. As the lawsuits progress depositions have been taken by many of the former employees of some of the nation’s largest mortgage companies. Many of the employees have stated under oath that they ordered to process foreclosures in a manner that resembled an assembly line.
The statements show further proof that a vast amount of foreclosures were processed without the due diligence and legal standard that they required. A lawyer in Florida who is representing 3,000 homeowners in the foreclosure case recently released these damaging depositions. The evidence was so overwhelming that it prompted state and federal regulators to initiate a separate investigation as to whether or not; false or fraudulent documents were filed with the courts.
In March of 2010, a former employee of Wells Fargo stated that in a typical day she would process between 300 and 500 foreclosures. She went on to say that her main job description was to make sure that her name and title were written properly on each document. There was little to no attention paid to the accuracy or even the contents of the foreclosure packets that she processed. It is unclear if the employees who gave depositions will be held liable for signing legal documents that were inaccurate. It is more than likely that they were offered some form of immunity from prosecution in return for their full cooperation.
In another case out of Houston, a loan servicing supervisor was asked to define the terms of a “Promissory Note”, “Lien” and “Circuit Court”. The servicer was unable to correctly define these terms. This is further proof that when the flood of foreclosures started to inundate banks and lending institutions, they put people in place to process foreclosure documents on the basis of numbers processed and not the legal accuracy of the foreclosure packets.
See Also:
Foreclosure Process
Bryan is a member of New Homes Section and a proud contributor to its blogging network. 
In an 8 hour day, a single processor could complete 0.96 applications per minute if they completed 500 total foreclosure applications. The simple fact that companies allowed this and aren’t being prosecuted for malfeasance is embarrassing to our oversight-hungry Federal government.
I couldn’t believe that these companies would even let this happen. It’s irresponsible and gives a bad name to those who are running ethical mortgage companies.
Definitely Paul. Unfortunately, most people who may have been foreclosed upon improperly, still don’t really understand what happened.
It is a big deal that the banks have not followed the law regarding the proper sale, assignment and recording of the transations. They need to be responsible for their actions.
Russ