Bank of America finds foreclosure mistakes: report

(Reuters) – Bank of America Corp (BAC.N) acknowledged some mistakes in foreclosure files as it begins to resubmit documents in 102,000 cases, the Wall Street Journal said.


The bank found errors in 10 to 25 out of the first several hundred foreclosures it examined starting last Monday, the newspaper said.


The problems included improper paperwork, lack of signatures and missing files, as well as cases in which information about the property and payment history being unmatched, the Journal said.



The bank told the newspaper that some of the defects seem relatively minor, and the bank has not found any evidence of wrongful foreclosures.


The bank found the errors while preparing less than 1 percent of the first foreclosure files that it intends to resubmit to the courts in 23 states, the Journal said.


All 50 U.S. states have started a joint investigation of the mortgage industry, focusing on allegations that, for years, banks have not reviewed documents properly or have submitted false statements to evict delinquent borrowers.


Bank of America spokesman Dan Frahm told Reuters: “We are not claiming perfection, nor can we. We are committed to getting our process right and giving our customers confidence they are being treated fairly.”


(Reporting by Jessica Hall in Philadelphia and Anand Basu in Bangalore; Editing by Lincoln Feast)



Source: Reuters

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