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McCollum Calls for End to Robo-Signing

October 13th, 2010 by flanews

Attorney General Bill McCollum is joining the call of 48 other Attorneys General asking lenders to stop questionable practices.

An investigation showed five major Banks were having staff sign court documents without reviewing the facts and without a notary public on hand. The practice is called “robo-signing.” General McCollum says the problem runs deep in these lenders methods of operation.

“They realize that they have a systemic problem. This process and this type of procedure has been going on extensively in their organizations. They may be worried about litigation. They may be worried about it continuing. They may be worried about buying some time out to be able to correct the problems, said McCollum. ”

The five banks have put a freeze on foreclosure to fix the problem. McCollum and other attorneys general are asking the banks to fix the problems with out the because it’s slowing down the housing recovery.

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