Foreclosure Furor Rises; Many Call for a Freeze

http://www.nytimes.com/2010/10/06/business/06mortgage.html?_r=1&src=busln

Congressional collusion with the Mortgage banks hit the NY Times
All in the same article with Nancy calling for investigation.
It just shows what a hypocrite she really is.
She tried to protect the Mortgage banks before the people.
It's pretty obvious who Congress works for.
This is one of the last acts they did before cutting out early to campaign.
But they made sure to protect their buddies before they went.

Some of the finger-pointing was also being directed back at Congress. The Ohio secretary of state, Jennifer Brunner, suggested in a telephone interview on Tuesday that a bill passed by Congress last week about notarizations could facilitate foreclosure fraud.

Dubious notary practices used by banks to justify foreclosures have come under scrutiny in recent weeks as GMAC and other top lenders suspended homeowner evictions over possible improper procedures.

Ms. Brunner, who has recently referred possible cases of notary fraud in her state to federal authorities, worries that the legislation would allow the lowest standard for notaries to become a nationwide practice. She said she also worried that the changes were coming in the middle of a foreclosure storm where people could lose their homes improperly.

“A notary’s signature is that of a trusted, impartial third party, whose notarization bolsters the integrity of the document,” Ms. Brunner said. “To take away the safeguards of notarization means foreclosure procedures could be more susceptible to fraud.”

As banks’ foreclosure practices have come under the microscope, problems with notarizations on mortgage assignments have emerged. These documents transfer the ownership of the underlying note from one institution to another and are required for foreclosures to proceed.

Florida judge halts foreclosure mill subpeona

http://www.miamiherald.com/2010/10/05/1857541/judge-halts-foreclosure-probe.html



A Palm Beach County judge struck down a state subpoena on Monday, halting an investigation into a Boca Raton law firm's foreclosure practices




Against a backdrop of halted foreclosures and exposed ``robo-signers,'' a Palm Beach County judge dealt a blow to an investigation of one of the law firms under state scrutiny, striking down the state's subpoena.

Judge Jack S. Cox of the 15th Judicial Circuit ruled that Attorney General Bill McCollum lacked standing to file his subpoena against Shapiro & Fishman law firm of Boca Raton, effectively blocking an investigation of that firm's foreclosure practices.

``I think it is a great result of the law firm and a fair result,'' said Gerald Richman of Richman Greer, P.A., legal counsel for Shapiro & Fishman. ``It should be the end of the investigation as far as the attorney general is concerned.''

The state has not given up on its investigation, according to a brief statement released Monday afternoon.

``Our attorneys are discussing our options, including whether or not we will appeal the judges ruling,'' said Ryan Wiggins, a spokeswoman for the attorney general's office.

McCollum had filed sweeping subpoenas against Shapiro & Fishman and two other law firms in August, alleging they may have used fraudulent documents as they speedily processed foreclosure cases for lenders. Monday's ruling could halt the state investigation, one of at least six going on nationwide in a foreclosure climate that has grown increasingly hot for lenders and the so-called ``mills'' that process their cases.


The judge's ruling was a clear rebuke of the attorney general's legal tactic. In addition to lacking standing, the judge wrote, the state's subpoena was ``overbroad, vague, inconsistent and unduly burdensome.''

The subpoena had demanded that the law firm hand over five years of documents and e-mails, and copies of all its contracts with foreclosing lenders. According to Richman, the state attorney general wanted to know every employee bonus that had been given in the past five years, as well as all company investments around the world.