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Their foreclosure procedures, the banks have repeatedly said, are sound.
In so doing, Mers violated state laws that strictly regulate foreclosure procedures.
All of the major servicers agreed to institute reforms in their foreclosure procedures.
The move is the latest effort to stiffen court foreclosure procedures.
"To take away the safeguards of notarization means foreclosure procedures could be more susceptible to fraud".
It is among several banks ensnared in state investigations and private lawsuits over questionable foreclosure procedures.
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In this case students examine a promissory note, the loan's status and history, and a master-lease agreement before drafting a concise business memo that will address issues such as foreclosure procedure and legal rights.
"[R]egarding foreclosures, as we have been saying publicly, we continuously view our document handling procedures and we believe the integrity of Citi's foreclosure process is sound," Gerspach said during a conference call with analysts, investors and journalists.
After a public uproar began last fall over problems in the foreclosure process, regulators in Washington and all 50 state attorneys general began a broad inquiry into servicing procedures.
Right now, the Obama administration argues, the housing market is facing the worst of both worlds — a big back-up in foreclosures as procedures are reworked, and a similarly long wait to get a mortgage modification in which the principal or the interest rate of the loan is lowered, easing monthly payments.
But a former employee recently testified that Mr. Stern's firm, in a rush to file and complete thousands of foreclosures, routinely violated procedures by having foreclosure-related documents notarized that were never checked for accuracy — all with the lawyer's knowledge.
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