While banks have repeatedly assured us that their foreclosure problems, commonly referred to as “ForeclosureGate,” are nothing more than “paperwork” problems, it seems this foreclosure crisis just won’t go away. And with 50 states’ attorneys general continuing to investigate the matter, more problems can be expected to surface.
A story on Bloomberg describes how an employee at Bank of America is reported to have testified that promissory notes were routinely held by Countrywide Financial Corp., now owned by BofA, even after such loans had been bundled and sold. And while BofA has denied the accuracy of the testimony, lawyers on both sides are scrambling to uncover the facts—facts which could severely impact the standing of thousands of foreclosure actions, as well as bolster the cases of investors demanding that BofA repurchase mortgage-backed securities.
In a previous POST I pointed out the deceptive practices that have come to light as the foreclosure crisis unfolded, and this story only causes more to question the actions and statements of the country’s major banks.
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