Foreclosure Robots Under Investigation
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Homeowners on the brink of eviction due to foreclosure
proceedings can rest a little easier: Mortgage lenders are dramatically slowing the pace of foreclosures
as state and national law enforcement officials take a closer look at the business practices of two top banks that processed thousands of defaults
. JPMorgan Chase and GMAC Mortgage have admitted to rubber-stamping foreclosure documents without reviewing them, to streamline the process for maximum volume and profit. Attorneys general in some states are initiating investigations; the Treasury Department announced a plan to examine "these troubling developments." Some observers suggest the scandal may aid a housing recovery by forcing lenders to negotiate with distressed homeowners rather than simply evict them.
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