Robo-Signer

DEFINITION of 'Robo-Signer'

An employee of a mortgage servicing company that signs foreclosure documents without reviewing them. Rather than actually reviewing the individual details of each case, robo-signers assume the paperwork to be correct and sign it automatically, like robots.

BREAKING DOWN 'Robo-Signer'

In the third and fourth quarters of 2010, a robo-signing scandal emerged in the United States involving GMAC Mortgage and a number of major U.S banks. Banks had to halt thousands of foreclosures in numerous states when it became known that the paperwork was illegitimate because the signers had not actually reviewed it. While some robo-signers were middle managers, others were temporary workers with virtually no understanding of the work they were doing.

RELATED TERMS
  1. Foreclosure Action

    The legal proceedings initiated by a lender in the case of mortgage ...
  2. Foreclosure Crisis

    A period of unusually high home foreclosure rates that caused ...
  3. Foreclosure Filing

    The initial legal process of selling a mortgaged property that ...
  4. Voluntary Foreclosure

    A voluntary foreclosure is a foreclosure proceeding that is initiated ...
  5. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
  6. Judicial Foreclosure

    Foreclosure proceedings in which a mortgage lacks the power of ...
Related Articles
  1. Personal Finance

    Don't Get Trapped in a Zombie Foreclosure

    Understand how foreclosures work and you can avoid the disastrous consequences of having a zombie foreclosure.
  2. Professionals

    How to Conduct an Effective Performance Review

    A proper performance review can be a very useful tool for both managers and employees.
  3. Trading

    Short Sales And Foreclosures: When It's Time To Move On

    Sometimes it's better to cut your losses, but foreclosures and short selling can have devastating impacts on your credit score.
  4. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  5. Financial Advisor

    Helping Clients Navigate Short Sales And Foreclosures

    Both buyers and sellers can benefit from a real estate professional experienced in dealing with short sales and foreclosures.
  6. Investing

    Collaborative Robots to Change Society

    Much ink has been spilled to describe dystopian robotic futures. But the emergence of collaborative robots may change the contours of that future.
  7. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  8. Insights

    Robots May Soon Be "Electronic Persons" With Responsibilities

    Robots may soon be "electronic persons" with responsibilities.
  9. Markets

    This New Trend Makes Robotics an Industry to Watch

    Robots created to work with humans, instead of taking their place, have the possibility to change the face of manufacturing across the globe.
  10. Markets

    4 Industries that Robots are Revolutionizing

    Understand how technology is changing robotics and how these robots are affecting our lives. Learn about four industries that are revolutionized by robotics.
RELATED FAQS
  1. What's the difference between short sales and foreclosures?

    Understand the difference between a short sale and a foreclosure; both result in the loss of a home, either through a sale ... Read Answer >>
  2. What is foreclosure investing?

    Foreclosure investing involves the purchase of houses that are somewhere in the process of being confiscated by lenders due ... Read Answer >>
  3. If my mortgage lender goes bankrupt, do I still have to pay my mortgage?

    Yes, if your mortgage lender goes bankrupt you do still need to pay your mortgage obligation. Sorry to disappoint, but there ... Read Answer >>
  4. My mortgage payments are no longer affordable; is there anything that I can do to ...

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment is ... Read Answer >>
  5. What impact has robotic production had on profitability in the automotive sector?

    Learn more about the efficiencies and improved profitability created in automotive companies by the use of robotic technologies. ... Read Answer >>
  6. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center