There have been a lot of reports within the financial community about the abhorring act that is now being labeled "robo signing". Federal investigators have uncovered the illegal practice of pushing through foreclosures without vetting them to a legal standard.
Prior to the inclusion of advanced technology in banks and lending institutions, lenders used to personally contact borrowers that were in trouble and seek an amicable resolution to the situation. The necessity for a banker to talk to a struggling borrower opened up opportunities not only for a personal touch to be added, but in many cases a knowledgeable lender would have ideas that a borrower would never have known otherwise.
Due to the amount of loans that are processed and the level technology that is used to manage all of that data, struggling borrowers have become nothing more than a column of red numbers. Not only has the personal touch been taken out of the equation, but the necessity to process so many of these foreclosed properties has opened the door for errors to occur. These errors have revealed the practice of "robo-signing".
Advocates for truth in lending standards had rallied together to prevent borrowers from being thrown out of their homes illegally. The process that it takes to legally remove a borrower from their home should be followed to the legal "T". Almost all of the foreclosures that were "robo-signed" are in fact accurately defaulted loans, but there have been some reports where borrowers have been thrown out that did not meet the legal standard.
Recently a 2300 page financial reform bill was introduced by Sen. Dodd and Sen. Frank. The bill is packed with new rules and guidelines aimed at the financial community. The bill also requests the creation of several government oversight committees to monitor Wall Street finest. The one thing missing in the extensive bill is the requirement to make banks and lending institutions treat their customers as anything other than a number.
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