March 16, 2014 !

The nation’s largest mortgage servicer, Wells Fargo, is being investigated for allegedly setting up detailed internal procedures to fabricate foreclosure papers on demand. New York Attorney General Eric Schneiderman and three major regulators are handling the investigation into the foreclosure manual, which the lender maintains does not violate any rules. “Wells Fargo’s foreclosure processes — today and back in 2012 — are appropriate [and] legal. To allege otherwise is simply misrepresenting the facts,” a Wells Fargo spokesperson said. “Wells Fargo’s Foreclosure Attorney Procedures Manual provides guidelines for outside attorneys to be compliant with state and regulatory requirements. Documents that a real bank acting like a bank would have in its possession appear to be completely absent in most if not all loans that are "performing" (i.e., the homeowner is paying, even if the party they are paying is the right and even if the loan has already been paid off). But as soon as the file

becomes subject to foreclosure proceedings, documents miraculously appear showing endorsements, allonges, powers of attorney and assignments. Such endorsements and other fabricated documents have been taken at face value by many judges across the country, despite vigorous protests from homeowners who were complaining about everything from "they didn't have the documents before, so where did they get them?" to luring homeowners into false modifications that were designed to trap homeowners into foreclosure. But according to the New York Post, lawyers, forensic accountants and consumer advocates have long suspected that banks were habitually fabricating documents to prove ownership of loans — something foreclosure defense lawyers call a “ta-da endorsement,” which describes the miraculous appearance of documents as needed by the bank in a foreclosure case.

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