What is robo-signing?

Robo-signing refers to the practice of bank employees or third-party servicers executing large volumes of foreclosure documents, affidavits, and loan modification paperwork without actually verifying the information contained in those documents. Instead of reviewing individual loan files, signers would stamp or sign documents in bulk, often without reading them or confirming that the facts stated were accurate.

The practice became widespread during the 2008 mortgage crisis when lenders faced a backlog of foreclosures. Processing departments at major banks and mortgage servicers developed assembly-line signing procedures to handle thousands of cases quickly. Employees would sign affidavits swearing to facts they had no personal knowledge of, such as the borrower's delinquency status or the accuracy of loan terms.

Robo-signing emerged as a critical legal defense in foreclosure cases when borrowers and their attorneys challenged the validity of documents used to initiate or proceed with foreclosure actions. If the person signing the foreclosure affidavit had no direct knowledge of the loan file or signed documents without review, the court could find those documents unreliable or inadmissible. This defect could halt a foreclosure or force a lender to restart the process with properly verified documents.

Attorneys handling foreclosure defense often investigate whether defendant banks used robo-signing practices, as it remains a viable way to challenge the lender's legal standing to foreclose.