A person who signs a legal document without reading it or understanding the document's contents.
In the foreclosure industry, robo-signing is the practice of a bank employee signing thousands of documents and affidavits without verifying the information contained in the document or affidavit. Some reports have revealed that one bank official performed the Herculean task of signing off on almost 10,000 documents in one month. The practice calls into question the validity of thousands of mortgage foreclosures across the country. When the practice recently came to light, four major banks, J.P.
Morgan Chase,
Ally Financial/GMAC, Bank of
America and Wells Fargo all called a halt to foreclosure actions in 23 states. In the days following their announcements, Bank of
America ceased foreclosures in all 50 states. A coalition of
40 attorneys general plan on launching a probe into mortgage-servicing practices and
may hold them accountable where there were violations of state foreclosure laws.
"Bank of
America and several other institutions, including JPMorgan
Chase and GMAC Mortgage, halted foreclosures in late September and early October amid a growing controversy over problematic documents, including so-called robo-signers — bank employees who say they signed foreclosure affidavits without reviewing the documents."
-The Washington Post, October
21, 2010