Industry NewsMortgage

States coordinate ‘robo signing’ response

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Attorneys general in all 50 states have agreed to "speak with one voice to the greatest extent possible," forming a bipartisan group to investigate affidavits and other documents loan servicers have prepared in foreclosing on homeowners.The decision by state attorneys general and state banking and mortgage regulators in more than three dozen states to coordinate their efforts comes as lenders expand their own internal investigations of foreclosure procedures outside of the 23 states where courts have jurisdiction over foreclosures.The investigations stem from allegations that workers processing files for the companies "robo signed" thousands of affidavits -- meaning they did not personally verify information contained in those documents.Bank of America said Friday that it was temporarily halting foreclosure sales in all 50 states as it expanded an ongoing review of foreclosure documents filed in judicial foreclosure states, even though the review has so far showed t...