I do not generally talk about foreclosure issues and news. This story was too good not to mention. 8.5 Billion bucks for robosigning! 
As you may know, robosigning happens in credit card issues too. We need to keep our eye on this, even if we are not involved in foreclosure.
Anyhow,Ten banks will now pay $8.5 billion for “robo-signing,” a fraudulent practice uncovered two years ago that sent the mortgage market into yet another tail-spin. Robosigning is when a person swears under the penalty of perjury that they have first hand personal knowledge of aspects of your account. They have never seen the account, they just sign it. Then someone else notarizes the document. The notary is sometimes in a different state…
This decision affects 3.8 million customers of the following robosigning banks:
Aurora,
Bank of America,
Citibank,
JPMorgan Chase,
MetLife Bank,
PNC,
Sovereign,
SunTrust,
U.S. Bank,
Wells Fargo
Wow, that describes most of the mortgages in America! Here is what they are going to do to settle this with the consumers…
To determine compensation amounts, the 10 banks will assign each borrower to one of 11 categories of potential harm, with the highest being active duty service members who were improperly foreclosed upon. Regulators will spot-check their decisions. Compensation levels for each of the categories are now being set by regulators.
It sure sound suspicious to me… Let the banks, who have committed fraud, figure out how much to pay everyone. Who thinks of these great ideas? <SARCASM…>
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