Foreclosure Volume May "Encourage" Sloppiness, Boilerplate Paperwork Or A Lack Of Thoroughness;" Makes Process "Fraught With Potential For Fraud"

A recent story in The Wall Street Journal serves as another reminder of the problems inherent with mortgage lenders' use of assembly line law firms to prosecute foreclosure actions:

• [A] Florida ruling against U.S. Bank was also a critique of law firms that handle foreclosure cases on behalf of banks, dubbed "foreclosure mills." Lawyers operating foreclosure mills often are paid based on the volume of cases they complete. Some receive $1,000 per case, court records show. Firms compete for business in part based on how quickly they can foreclose. The David Stern firm had about 900 employees as of last year, court records show.

• "The pure volume of foreclosures has a tendency perhaps to encourage sloppiness, boilerplate paperwork or a lack of thoroughness" by attorneys for banks, said Judge [Lynn] Tepper of Florida, in an interview. The deluge of foreclosures makes the process "fraught with potential for fraud," she said.

Source: Judge Bashes Bank in Foreclosure Case.