Bank of America has joined JPMorgan Chase in suspending foreclosures in twenty-three states following revelations that employees at several lenders had approved thousands of foreclosure affidavits and other documents without proper vetting. In Massachusetts, one Bank of America employee admitted she signed as many as 8,000 foreclosure documents a month and “typically” did not read any of them because of the high volume. Attorneys general in California, Colorado, Connecticut, Illinois and Ohio have all launched investigations into what appears to be widespread fraud by the nation’s major banks and lenders. It is unknown how many homeowners lost their homes due to foreclosure fraud. Banks are expected to seize a record 1.2 million homes this year, a twelvefold increase since 2005.
