New Jersey Superior Court Judge Mary Jacobson cleared the top-four servicers to resume foreclosures in the state. Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) each assured to the satisfaction of the court the quality of their procedures. Last October, most mortgage servicers halted the foreclosure process across the country when many had to correct mishandled and forged documentation as part of the robo-signing scandal. The problems centered around judicial states, including New Jersey. In October, New Jersey had the 24th highest foreclosure rate in the country, with servicers filing roughly 5,200 foreclosures that month, according to RealtyTrac. By July, the Garden State’s foreclosure rate dropped to 42nd with just 1,112 filings last month. According to the orders Jacobson issued Monday, servicers made several assurances including: the authority to act on behalf of a lender; an up-to-date system of payment history and loan status; new processing steps and quality control for affidavits; adequate staff and sufficient training programs; and effective lines of communication with attorneys handling foreclosure cases in the state. Jacobson’s order authorizes the court to monitor the servicers’ compliance in new foreclosure cases for the next 12 months. “[Bank of America] has shown … it has processes and procedures in place, which if adhered to, will ensure that the information set forth in affidavits or certifications submitted in foreclosure proceedings will be provided by an affiant authorized to act on behalf of the plaintiff in the action, and that each affidavit or certification submitted will be properly executed and will be based upon knowledge gained through a personal review of relevant records,” Jacobson wrote in the order. Nationally, the negotiations between the 50 state attorneys general and major servicers to settle the robo-signing investigation remain ongoing. Write to Jon Prior. Follow him on Twitter @JonAPrior
Jon Prior was a reporter with HousingWire through late 2012.see full bio
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Jon Prior was a reporter with HousingWire through late 2012.see full bio