BofA and JPMorgan cleared to resume foreclosures in New Jersey

16 August 2011

Bank of America Corp (BofA) and JPMorgan Chase are among a number of mortgage lenders cleared to resume uncontested foreclosures in New Jersey.

The duo - as well as Citigroup's home loan unit and Wells Fargo and Co, which was established in 1852 - received approval to revive their operations in the state from superior Court Judge Mary Jacobson.

Having reviewed the procedures of the institutes to ensure data in uncontested foreclosures is focused on a personal review of records, the judge decided the four organisations should undergo monitoring.

The case was heard after six lenders in total were accused of permitting such documents without them being personally verified - a process dubbed 'robo-signing'.

However, Judge Jacobson ruled that the four groups demonstrated they have established procedures that ensure the reliability of their legal operations.

As part of the decision, a special master - retired judge Richard Williams - is to scrutinize the foreclosure activity of the companies over the next year.

By Asim Shah

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