Are Clerk Audits coming to Florida? Audit by Mass Recorder reveals 75% of Assignments of Mortgage Fraudulent or Suspect

07/01/2011 5:27 PM | Anonymous

Yesterday [June 28, 2011] at the Annual Conference of The International Association of Clerks, Recorders, Election Officials and Treasurers (IACREOT), Register John O’Brien revealed the results of an independent audit of his registry.  The audit, which is released as a legal affidavit was performed by McDonnell Property Analytics, examined assignments of mortgage recorded in the Essex Southern District Registry of Deeds issued to and from JPMorgan Chase Bank, Wells Fargo Bank, and Bank of America during 2010.  In total, 565 assignments related to 473 unique mortgages were analyzed.

McDonnell’s Report includes the following key findings:

  • Only 16% of assignments of mortgage are valid
  • 75% of assignments of mortgage are invalid.
  • 9% of assignments of mortgage are questionable
  • 27% of the invalid assignments are fraudulent, 35% are ”robo-signed” and 10% violate the Massachusetts Mortgage Fraud    Statute.
  • The identity of financial institutions that are current owners of the mortgages could only be determined for 287 out of 473(60%)
  • There are 683 missing assignments for the 287 traced mortgages, representing approximately $180,000 in lost recording fees
  • per 1,000 mortgages whose current ownership can be traced.
When will we see this type of systemic evaluation in Florida?

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