FDIC Head: Bankster Robosigner Screw-Ups "Infected Millions Of Foreclosures"; "Damages ... Could Be Significant & Take Years To Materialize!"

The Wall Street Journal reports:

• The head of the Federal Deposit Insurance Corp. is warning that flaws may have “infected millions of foreclosures” and questioned whether other regulators’ inquiries into problems at the nation’s mortgage-servicing companies have been thorough enough.
• “We do not yet really know the full extent of the problem,” FDIC Chairman Sheila Bair said Thursday in written remarks submitted to a hearing of the Senate Banking Committee. “Flawed mortgage-banking processes have potentially infected millions of foreclosures, and the damages to be assessed against these operations could be significant and take years to materialize.”
• Federal and state officials launched numerous investigations last autumn after revelations that, to process foreclosures, banks used “robo-signers” who didn’t review documents prepared by their colleagues. Banking regulators’ have said their reviews of a sample of 2,800 foreclosure cases have found a small number of improper foreclosures.

For more, see FDIC’s Bair: Millions of Foreclosures Could Be ‘Infected’.

In related stories, see:

• The Palm Beach Post: Tip from Palm Beach Gardens woman spurs wide search for papers 'Linda Green’ OK’d;
• The Saginaw News: Michigan Attorney General's office investigating possible mortgage document fraud ("The name “Linda Green” was hard to miss").