robo-signing

Hi!
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Robo-signing scandal refers to the practice of signing foreclosure applications without reviewing them. Mortgage loan servicers are required to verify the information contained in foreclosure application forms before signing them. Some mortgage loan servicers received around 10,000 foreclosure applications (every month) in this year. As it was quite difficult to check all the papers, they simply approved foreclosure applications without checking whether or not the informations in the documents were correct.

It was due to this robo signing scandal that the foreclosure rates have dipped in the month of November, 2010. The court had put a stop order on all foreclosure proceedings due to this.