A recent story in the Washington Post reports that a federal investigation is underway to determine whether banks and other financial firms broke U.S. law when using fraudulent court documents to foreclose on people’s homes. The criminal investigation is focused on whether companies misled federal housing agencies, and whether the firms committed wire or mail fraud in filing false paperwork.
The Obama administration is seeking to send the message that it will hold banks accountable for illegal foreclosures. The investigation will likely be a lengthy one and target banks, independent mortgage servicers, law firms and other companies involved in the foreclosure process.
Beyond the investigation, federal agencies could take regulatory steps to address misdeeds. The Federal Housing Administration (FHA) and Ginnie Mae, which packages and sells FHA-backed mortgages, could require banks to change their practices and impose financial penalties if firms choose to violate the rules.
Some major banks (i.e. – Bank of America) are preparing to submit new paperwork and resume the process of seizing homes in Florida and other states which require a judge’s approval.
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If you have any questions on this topic feel free to contact foreclosure defense attorney, Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.