Monday, October 25, 2010
Bank of America is resubmitting mortgages for foreclosure with an admission that a few hundred were handled improperly. But, is that confession too little and too late? The damage to the reputation of financial institutions has been done, and both government and the public are skeptical. The feeling is that not only did financial institutions make the original loans poorly, but they are now botching the job of taking over foreclosed properties. There are plenty of stories about "robo-signers," people who were supposed to have reviewed documents for foreclosure who didn't or failed to examine them as required. The marketplace is in chaos with missing documentation, improper handling and some banks unable to determine who actually owns a home because the loan was sold off years ago and original documentation destroyed. Against that background, anything Bank of America claims is suspect. It is difficult to win back trust once one has lost it -- especially among financial institutions.