Companies Still Liable For 'Robo' Practices Even After Historic Settlement
Financial institutions and the third-party contractors that service loans are still liable for the improper notarization and document signing practices exposed by the “robo-signing” crisis, even after the $25-billion national mortgage settlement with federal agencies and 49 state attorneys general.
The most recent example is a lawsuit filed against loan servicing giant Nationwide Title Clearing, Inc., by Illinois Attorney General Lisa Madigan. The lawsuit accuses the Florida-based company of running a “document production factory” in which its employees improperly affixed the seals and signatures of Notary co-workers to foreclosure-related documents, signed and filed documents containing false information, and routinely signed documents on behalf of others.
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