Sunday, February 26, 2012

Robosigning Scandal To Surface With Commercial Real Estate Mortgage Securitizations?

CBS News Moneywatch reports:

  • The nation's banks are looking at a robo-signing problem with commercial real estate which may dwarf the one for home mortgages, according to a new study.

  • Research by Harbinger Analytics Group shows the widespread use of inaccurate, fraudulent documents for land title underwriting of commercial real estate financing.

  • According to the report:

    This fraud is accomplished through inaccurate and incomplete filings of statutorily required records (commercial land title surveys detailing physical boundaries, encumbrances, encroachments, etc.) on commercial properties in California, many other western states and possibly throughout most of the United States.

For more, see Banks face crisis in bungled commercial mortgages.

No comments: