NEW YORK – July 20, 2011 – Lawmakers and enforcement agencies called for hearings and further investigation Tuesday after learning that the illegal practice known as robo-signing has continued in the mortgage industry.
The Associated Press reported on Monday that county officials in at least three states – Massachusetts, North Carolina and Michigan – say they have received thousands of mortgage documents with questionable signatures since last fall. That’s when forged signatures and false affidavits – also called robo-signing – led to a temporary halt to foreclosures. Banks and mortgage processers promised to stop the practice. But the findings of the county officials indicate that robo-signing is still a widespread problem.