NJ Judge Threatens to Close Down Big Banks over Fraudclosure
via madamab over at her place.
NJ state Supreme Court Chief Justice Stuart Rabner has ordered 6 banks to demonstrate why the state shouldn't shut down their operations in NJ in Jan:
Six lenders who have combined to file nearly 30,000 foreclosure actions in New Jersey this year face the possible suspension of their operations next month under a court order announced Monday by state Supreme Court Chief Justice Stuart Rabner.
The action follows a report submitted to the Supreme Court that, citing depositions and court filings in other states, paints a picture of systemic abuses in the filing of foreclosures that include so-called "robo-signing," in which employees signed hundreds of documents without checking them for accuracy.
The 6 banks were chosen because of the high volume of foreclosure actions brought by them. Twenty-four other banks are required to submit docs to a special master (sort of an ad hoc judge) showing that "there are no irregularities in their handling of foreclosure proceedings."
Chief Judge Rabner was apparently prompted to this action based on a report submitted to the court detailing bankster abuses:
In one instance cited in an administrative order, an employee of OneWest Bank, formerly IndyMac Federal Bank, said in a deposition that she signed 750 documents a week, taking no more than 30 seconds per document and relying on others to check the documents' accuracy prior to signing.
Employees testifying in other depositions said they were authorized to sign documents despite having no background in the mortgage industry and little or no understanding of what they were signing.
I don't know anything about Rabner, but:
More problematic, [Rabner] said, is that 94 percent of the foreclosures have been uncontested, often due to homeowners' inability to afford legal counsel.
It's been so long since I've heard anyone in government show any concern for the rest of us, I forgot what it sounds like. And I hate to get my hopes up, but if even one big bank gets closed down in just one state...