Photo: Associated Press
Turns out the reason for foreclosure gate isn’t that the people who caused foreclosure-gate didn’t have enough time to read all of the documents – it’s that they had no idea what they were reading.Banks hired foreclosure and loan officers that were former employees of Burger King, factories, and hair salons when they were hit with a wave of foreclosures in 2007.
A piece in the New York Times today reveals that many of bank employees reading and signing foreclosure documents barely knew what a mortgage was.
You won’t believe the things these uneducated bank employees admitted.
“I don’t know the ins and outs of the loan,” a Goldman Sachs employee, who worked at Litton Loan Servicing, said in a deposition last year. “I’m not a loan officer.”
The kicker: he was a loan officer.
And some admitted they knew they were lying when they signed foreclosure documents, according to CTV News.
A former JPMorgan executive called these workers the “Burger King kids.” In essence they are employees who banks rushed to hire for their loan servicing arms starting in 2007 even though they had only a high school education, because the banks were faced with a startling rise in foreclosures and they were desperate for warm bodies to “read” the documents.
Of course since then, many of them have admitted they did not read foreclosure documents, hence the banks’ halting foreclosures and causing the scandal that has been termed “foreclosure-gate.”
Now we know that they did not have time to read the documents, because there were too many, and they weren’t qualified to read and sign the documents.
As the Canadian news network CTV puts it:
An avalanche of home foreclosures in 2007 required US financial institutions and their mortgage departments to hire hair stylists, retail workers and people who had worked on assembly lines to handle homeowners’ papers even though they did not have any formal training.