Foreclosure in California, A Crisis of Compliance
The City and County of San Francisco’s
Office of the Assessor?Recorder retained
Aequitas Compliance Solutions, Inc. to
review 382 residential mortgage loan
transactions (the “subject loans”) that
resulted in foreclosure sales that occurred
from January 2009 through October 2011.1
Over this period, there were 2,405
foreclosure sales. The subject loans thus
represent approximately 16% of the total.
(See Appendix B – Methodology.)
We analyzed the subject loans to determine
the mortgage industry’s compliance with
applicable laws. Specifically, we focused our
analysis on important topics relating to six
Subject Areas:
• Assignments
• Notice of Default
• Substitution of Trustee
• Notice of Trustee Sale
• Suspicious Activities Indicative of
Potential Fraud
• Conflicts Relating to MERS
Our Subject Areas and the topics we
explore therein may not be exhaustive.
Nonetheless, we believe our analysis
presents an accurate picture of the nature
and frequency of the mortgage industry’s
performance respecting compliance with
important aspects of California’s nonjudicial
foreclosure laws.
Overall, we identified one or more
irregularities in 99% of the subject loans. In
84% of the loans, we identified what appear
to be one or more clear violations of law. - Login to post comments
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