It's super-illegal to file false affidavits with faked notarization, even if your intentions are good.

From what I've read, they aren't faked notarizations. The affidavits in judicial foreclosure states require that the person signing the forms confirm that they have "personally reviewed" the file. Well, they hadn't. Bob in accounting had, but he's got 500 files on his desk that he still has to get through. So, person B signs that it is verified. That's the fraud--if you really want to consider it that. Nobody is disputing that the people didn't make their payments. Nobody is disputing that the dollar amount owed is wrong. They're disputing that the wrong person signed the affidavit. It's stupid, and it is why you are seeing the files come back on the market in 2-3 weeks. You get the right person to sign the affidavit, and you move along. Welcome to Idiocracy.

I know that in Florida, the three big foreclosure attorney mills had been signing the documents on behalf of the investor. Most of them stopped because they were being called into court to testify about that signing and in most cases they were also robo-signing documents. It all came into the open when a disgruntled former employee of one of those firms went to a "Stop Foreclosure" attorney.

I just heard something new to me on the radio regarding the current REO moratoriums. I believe it was a CBS reporter who stated that it's not just homeowners going after banks for shoddy or falsified documents, it's now investors who feel they were lied to about how loans were underwritten. They'll be suing to force banks to take back the loans. Anyone else hear anything about that?

Fannie and Freddie have been charging back loans for years, long before this latest round of FCs. If the loan is found to be out of compliance with underwriting guidlines, overenthusiastic appraisal or similar, they won't pay out. Same with MI companies. Basically, they won't guarantee against fraud.