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Robo-signing settlement in the works

Resolution could clear way for more bank repos, foreclosure sales

Federal regulators looking into so-called "robo-signing" practices by mortgage loan servicers found "critical deficiencies and shortcomings" in procedures that in some cases violated state and local laws and regulations, but uncovered only a small number of foreclosure sales that shouldn't have gone through.The Office of the Comptroller of the Currency and other federal banking agencies are in the process of finalizing sanctions against loan servicers, the OCC's Acting Director John Walsh said in Congressional testimony this week.State attorneys general who are conducting their own robo-signing investigation hope to work with federal agencies to reach a coordinated settlement with loan servicers, the Wall Street Journal reported, citing Iowa Attorney General Tom Miller, who is heading the states' investigation.A settlement could result in a surge in bank repossessions and foreclosure sales, particularly in 23 judicial foreclosure states where courts typically overse...

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