On Thursday, government officials will announce a record $26 billion settlement with the biggest banks related to foreclosure abuses including “robo-signing” of documents. Robo-signing is the practice of bank employees signing thousands of documents or affidavits without any verification. A conference will be held by the Department of Justice at 10 a.m. to announce the agreement principal in which 42 states have agreed to sign.
Within the past year, President Barack Obama has advocated for a mortgage relief plan with the biggest banks, which include J.P. Morgan Chase, Wells Fargo, Bank of America, and Ally Financial to resolve an investigation of foreclosure abuses. During a record national swarm of foreclosed homes in 2010, evidence of robo-signing began to surface. Patrick Madigan, the Iowa assistant attorney general, reported to the New York Times that homeowners who participate in the settlement will have the right to sue banks. The housing market remains depressed across the nation.
