Maryland congressman takes action against robo-signers
Maryland Congressman Elijah Cummings, senior member of the Joint Economic Committee, sent a letter to Maryland Governor Martin O’Malley and Attorney General Douglas Gansler requesting that they initiate a 60-day moratorium on all Maryland foreclosures. Last week, HousingWire reported thatAlly Financial and JPMorgan Chase& Co. (JPM) came forward with information that their foreclosure affidavits may have been faulty. Both companies are currently reviewing documents signed by robo-signer employees who signed the documents without knowledge of the case or the presence of a notary. Attorneys General of Connecticut, Illinois and California have launched investigations to investigate the possibility of faulty foreclosures within their own states. Within the affected states, some families may have been evicted from their properties, due to inaccurate or deficient information, and their properties sold to new owners. “Critically, if a foreclosure is conducted on the basis of fraudulent information, the state legal system may unwittingly become complicit in unfairly depriving a citizen of his or her property,” reads Cummings’ letter. Cummings said that the property values of the surrounding homes are also affected when a foreclosure takes place. Neighboring home values can decrease, and continue to decrease, and cities can lose revenue after foreclosures. “The foreclosure crisis is unacceptable to me, and we must take action to keep the American Dream from turning into a nightmare for millions of people,” Cummings said. “We must not allow a single person to be foreclosed on, or to be evicted from their home, until government agencies are absolutely certain that all procedures and laws were adhered to in the foreclosure process.” Ariana Garza is an editorial assistant at HousingWire.