AG Gets $2.5M Robo-Signing Settlement
A Georgia company is paying Michigan after an investigation into fraudulent mortgage documents. Video by fox47news.comvideo
It's what Michigan Attorney General Bill Schuette called a phony scheme and a part of the foreclosure crisis. Mortgage document processing company DocX is now paying a price. The investigation started in 2011 after county officials reported possible fake mortgage documents that are being filed in their offices.
"This was criminal activity that was filed in my office, my office was basically a crime scene," said Ingham County Register of Deeds Curtis Hertel.
Hertel's office received about 300 fraudulent mortgage documents and more than 1000 were filed around the state.
"There's a process in terms of every document has to be signed by an authorized official of the bank," said Michigan Attorney General Bill Schuette.
Instead, most of the documents show the name Linda Green, signed with many variations in handwriting. Officials say the company's goal is to save time, increase profits and at times, that sped up foreclosures.
"I think if it sped it up by three months, by the time someone would've been foreclosed and they could've economically recovered in those three months," said Hertel.
For Attorney General Schuette, the $2.5 million civil settlement is not enough. He also filed felony charges against the former president of DocX.
"The woman who's the president of this robo-signing company will be on the inside of the prison bar looking out," said Schuette.
Hertel says the system is flawed and the problem is far from being over.
"The foreclosure mills of this state are still using these documents to kick people out of their homes."