Mar 14, 2012
HUD report: Banks broke law, took billions from taxpayers
14 Mar 2012
Posted by Andrew Kantor
The report from the Department of Housing and Urban Development on the robo-signing scandal found that the nation’s largest banks not only broke the law, but pushed their employees to do so in a systematic way. They also tried to stonewall government investigators looking into the fraud.
Taxpayers paid at least $6 billion in bailouts to the banks.
Here are a few choice snippets from the HousingWire story:
Each servicer either attempted to keep HUD OIG investigators from interviewing those who prepared the affidavits or simply didn’t have the ability to provide data requested. In the report, investigators described it as a “hindered review.”
A number of affidavit signers at Wells Fargo told investigators they signed up to 600 documents per day….
Chase executives disclosed a production goal of 40 affidavits daily, but many employees interviewed said they signed up 70 per day….
One [Bank of America] employee admitted to signing “12- to 18-inch stacks of documents at a time without a review,” according to the report….
[I]mmediately before Wells Fargo hired an individual to be vice president of loan documentation, the person worked at a pizza restaurant and as a bank teller. Another had been a department store cashier and daycare worker, while another had worked on the production line in a factory….
Banks’ reaction to breaking the law, forcing homeowners out of their homes illegally, defrauding the government, and bilking taxpayers? It’s summed up nicely in this quote from an Ally spokeswoman: “[W]e regret that possible procedural deficiencies with respect to certain affidavits occurred.”