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US banks accused of fast-tracking foreclosures

by Staff Reporter7 minute read
The Adviser

Making headlines today, the ABC has reported that some of the biggest names in American banking used false or unverified data to fast-track foreclosures.

According to the news channel, parts of the American banking industry stand accused of “robo-trading” – rubber stamping documents used to evict people who fall behind on their mortgage payments.

If proven to be true, the allegations could further tarnish the already blemished US banking district.

Some of the banks, including Bank of America, are currently undertaking “paper work” investigations to prove or disprove the allegations.

While this is being completed, many analysts are calling for a total freeze on foreclosures. However, the White House is opposing the call and warned that a freeze could be “catastrophic”.

Wall Street banks are also fighting the freeze, claiming a moratorium would "unjustly" create losses for housing market investors and further constrain consumer credit and spending.

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