Earlier this year, five of the nation’s largest mortgage servicers reached a $25 billion settlement with federal and state officials regarding the now infamous “robo-signing” scandal. Specifically, it was alleged that bank employees were signing sworn foreclosure affidavits even though they did not have first-hand knowledge of the facts contained in the affidavits – leading to claims of unfair practices and foreclosure abuses.
When the robo-signing settlement was announced, it was heralded as a victory for consumers and that it would provide immediate relief to homeowners facing foreclosure. However, as the banks now start to fulfill their obligations under the national settlement, it appears that they may not actually be shouldering as much of the burden as the initial numbers suggest.
