After reviewing a report and recommendations presented to him, New Jersey Chief Justice Stuart Rabner announced on Monday a series of steps to protect the integrity of foreclosure filings in the state.[IMAGE]
The report featured a review of ""robo-signing"" irregularities by mortgage lenders and servicers and included analysis of actions other states had taken.
Judge Mary C. Jacobson, who has been designated to oversee foreclosure matters in the state, signed an order directing six lenders and service providers who have been associated with irregularities within their foreclosure[COLUMN_BREAK]
practices to demonstrate why uncontested foreclosure actions they have filed should not be suspended.
""Today's actions are intended to provide greater confidence that the tens of thousands of residential foreclosure proceedings underway in New Jersey are based on reliable information. Nearly 95 percent of those cases are uncontested, despite evidence of flaws in the foreclosure process,"" said Rabner on Monday.
He continued, ""For judges to sign an order foreclosing on a person's home, they must first be able to rely on the accuracy of documents submitted by lenders. That step is critical to the integrity of the judicial process.""
At the direction of the chief justice, an administrative order has been issued which details the scope of the problem and orders certain procedures to safeguard the mortgage foreclosure process.
The order's requirements include Judge Jacobson's order to show cause; an administrative order that directs 24 lenders and servicers to demonstrate that there are no irregularities in their foreclosure proceedings; and a requirement that a bank's lawyer must certify that he or she spoke with the bank employee who signed the foreclosure documents and confirmed their accuracy.