The study, commissioned by Phil Ting, a San Francisco accessor-recorder, studied 400 foreclosure sales in the city from January 2009 to November 2011 and uncovered rampant abuse similar to lender fraud and faulty documentation found in other parts of the United States.
The New York Times wrote:
Related News: US To Sue Banks Over Subprime Mortgage Loans
Related News: State of California Sues Fannie Mae and Freddie Mac Over Foreclosures
A staggering 99 percent of foreclosures violated one or more documentation irregularities, such as incomplete filings, to premature foreclosures and improper claims.
The report done by Aequitas, a mortgage regulatory compliance firm, comes days after a $25 billion settlement over foreclosures improprieties between the United States government and 49 state attorney generals and five major banks.
Related News: Bank of America Fined $335m for Mortgage Lending Discrimination
Related News: Citigroup To Pay Out $158 Million Settlement For Mortgage Fraud
Related News: Citigroup Pays US$285 Million To Settle Fraud Charges
While the banks have never formally admitted wrongdoing, the settlement requires the banks to reduce outstanding mortgage amounts and to provide $1.5 billion in reparations for borrowers who were unlawfully removed from their homes.
Ting said:
The report contradicts the assertions of many banks that foreclosure improprieties did little harm because the borrowers were behind on their mortgages and should have been evicted anyway.
The Aequitas 'A Crisis of Compliance' report noted: