Audit Irregularities

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According to a report released on Feb. 15 in San Francisco county, about 400 recent foreclosures were determined to involve either legal violations or suspicious documentation.  This recent report suggests how pervasive foreclosure irregularities may be across the nation.

Questions:

1.  What is the acronym for the mortgage database that was started in 1995 to track information for lenders?

2.  What types of legal violations did the report indicate?

3.  Where did the greatest number of improprieties occur?  What internal controls could have prevented this?

Source:

Morgenson, G. (2012). Audit Uncovers Extensive Flaws in Foreclosures. The New York Times, Feb. 15 (Retrievable online at http://www.nytimes.com/2012/02/16/business/california-audit-finds-broad-irregularities-in-foreclosures.html?_r=2&hp)