Friday, March 18, 2011

Missouri AG: Foreclosure fraud in robo-signing and other areas


All 50 state attorney's general have been coordinating an investigation into foreclosure fraud for months. And Missouri's chief investigator tells Fox 2 they've found plenty of fraud, but no one to prosecute, and hardly any way to stop further foreclosures, even if they may be fraudulent.

"We've found a good deal of fraud in the process, in the foreclosure process itself, most notably with robo-signing," said head of the Missouri Attorney General's Consumer Protection Division Doug Ommen, referring to the process where foreclosure documents are signed blindly by people paid to forge the signatures of bank or lending company officials. "We have found fraud and we have found forgery in robo-signing and other areas."

But before an appearance at a South Side symposium sponsored by the activist group Missourians Organizing for Reform and Empowerment (MORE), Ommen said the trail of individual mortgages is as tangled as a a trashcan full of coat hangers, and even harder to unravel. "Loans have been totally seperated from individuals and institutions," he said. "Loans are chopped into different pieces, sold and re-sold and re-sold again, maybe 10 or 15 times. Meanwhile the original paperwork is in a warehouse somewhere and no one knows where it is.

Read on.


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