Nevada Threatens To Arrest Bankers

 

 

 

 

In a widely unpublicized move earlier this month, Nevada passed a law making illegal foreclosures, well, illegal!

Since the housing market collapse, many of the more unsavory practices of the mortgage industry have come to light. One of the worst has been the “robo-signing” of foreclosures in which banks have repossessed hundreds of thousands of homes without having the proper documents or sometimes any of the documents at all.

One specific aspect of this has now been made a felony by the Nevada legislature.


From Housingwire.com:

Assembly Bill 284 took effect Oct. 1, making it a felony if a mortgage servicer or trustee made false representations concerning a title. There also will be a $5,000 fine assessed if fraud, such as robo-signing, is detected. The new law requires servicers to provide a new affidavit that provides the amount due on the mortgage, who is in possession of the note and who has the authority to foreclose.

Basically, no more foreclosures unless the paperwork is in order. Currently, the onus is on the homeowner to sort out the industrial scale disaster that is the mortgage market but now, in Nevada at least, the banks have to clean up their own mess before they can kick people out of their homes.

Granted, the mortgage industry is confusing to the average person on the street and one gets the feeling the banks like it that way. Confusion breeds acquiescence, after all and it’s much easier to cover illegal activities if no one can tell if they are illegal or not. Nevada has taken an important step in curbing the corruption and abuses that plague the housing market. But the real scandal is why more states haven’t followed suit.

Read more about it here.

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