AP Exclusive: Mortgage 'robo-signing' goes on

July 18, 2011 - 3:59 PM

County officials in three states tell The Associated Press that an illegal practice known as "robo-signing" continues in the mortgage industry — months after banks and mortgage companies promised to stop it.

Last fall, the nation's largest banks suspended foreclosures while they investigated robo-signing. That's the term used when someone in the mortgage industry forges a signature or signs a mortgage document without reading it.

In one Massachusetts county alone, the office that handles property deeds has received almost 1,300 documents with the name of a known robo-signer.

Critics say it's proof that the mortgage industry hasn't gone far enough to stop fraud.