WikiLeaks Promises to Shed Additional Light to Banks’ Foreclosure and Other Practices

The issue about mortgage lenders’ alleged mishandling of foreclosure procedures is set to get longer. In what seems to be a saga, another third party is making the plot more interesting. WikiLeaks, a non-profit organization in the media, promises to leak and publish by early next year thousands of confidential documents that were derived from a major US bank.

WikiLeaks founder, Julian Assange, said such classified documents would give the public more truthful and representative insights into the way banks truly behave especially at the executive level. Mr. Assange said the organization’s forthcoming exposé about banking practices is set to stimulate more investigation and reforms in the banking industry. He added that the documents would reveal several flagrant violations and even unethical practices in the banking industry.

The promise from WikiLeaks comes as mortgage banks face investigations after numerous clients complained and accused them of mishandling foreclosure documents. The complainants claim that the home-loan lenders use robo-signing schemes to complete processing of a foreclosure in as fast as one day, neglecting due and legal processes required.

The accusations forced the banks to temporarily halt their respective foreclosure activities in September. The action posed significant impact to the overall housing prices and activities. By the end of November, some of the banks started resuming foreclosure activities, albeit in a slow progression.

The US Senate Banking Committee is set to conduct a hearing this week regarding the alleged unethical and improper practices in the mortgage banking sector. The legislators have summoned several regulators and representatives from banks and mortgage servicing firms to testify for the issue.

In 2009, there were reports that WikiLeaks managed to get hold of about 5 gigabytes of confidential data from the hard drive of one of Bank of America’s executives. The lender has not commented or reacted on that speculation. WikiLeaks has remained aggressive and said it has many other documents that would be damaging to ‘multiple financial firms.’

Analysts assert that whether or not it is really Bank of America that WikiLeaks plans to expose, such banking documents could surely shed more light to the issues that hound the banking industry. Public outrage towards banks ensued after the foreclosure fiasco. Observers note that numerous Americans feel hatred towards banks who got involved in the foreclosure problem, because some of those were given financial aid by the federal government during the financial crunch via the Troubled Asset Relief Program.

For more news and information about this issue and more other foreclosure and mortgage subjects, visit ForeclosureConnections.com.