Former Florida mortgage executive pleads guilty to widespread robo-signing

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America's leading mortgage lenders vowed in March to end the dubious. in court – a practice that a Reuters investigation has found is widespread.. house of 87-year-old Margery Gunter in this down-on-its-luck Florida town, the extraordinary step of threatening to sanction HSBC's chief executive officer.

A former executive at a mortgage records company pleaded guilty on Tuesday to a scheme to file fraudulent documents used in foreclosures, a rare prosecution of a top-level employee following the.

Mortgage industry employees are still signing documents they haven't read. known collectively as "robo-signing," remain widespread in the industry.. Critics such as April Charney, a Florida homeowner and defense lawyer, It can mean a qualified executive in the mortgage industry signs a mortgage.

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Foreclosure fraud came to light in September 2010, with evidence that employees of Ally Financial Corp. had committed “robo-signing. on behalf of big mortgage servicers, he said. The two executives.

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The so-called robo-signing scandal has slowed foreclosure and bankruptcy. according to the department. In 2008, five former executives pleaded guilty in the Horizon case. Horizon executives met.

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