Monday, November 07, 2011

Nevada Makes Foreclosure Fraud A Felony

According Nick Timiraos of the Wall Street Journal (2011, Nov 7):
Foreclosure filings in Nevada plunged in October during the first month of a new state law stiffening foreclosure-processing requirements.... Nevada’s state Assembly passed a measure that took effect on Oct 1 designed to crack down on “robo-signing,” where bank employees signed off on huge numbers of legal filings while falsely claiming to have personally reviewed each case.... Among other steps, the Nevada law makes it a felony — and threatens to hold individuals criminally liable — for making false representations concerning real estate title. Individuals are also subject to civil penalties of $5,000 for each violation.
Other states should follow Nevada's lead by passing and enforcing laws designed to discourage incidents of title fraud by banks and others in the courts. Foreclosure rates in Nevada have lead the nation since the financial crisis began in 2008.

Source: Timiraos, N (2011, Nov 7), Nevada Foreclosure Filings Dry Up After ‘Robo-Signing’ Law, Wall Street Journal Online.

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