Since the 2008 financial crisis, twenty of the world’s largest banks including JPMorgan, Citibank and HSBC have paid over US$235 billion in fines.
Interestingly, the majority of the fines derived from the banking system’s inefficiency and failure to keep track of sold mortgages and insurance products.
According to the financial data provided by news agency Reuters, fines for U.S. mortgages have accounted for nearly US$150 billion, with America’s biggest banks including Bank of America, JPMorgan and Citigroup being fined for billions of dollars due to their non-fulfilment in maintaining a ledger of all mortgage-related documents.
A mortgage loan, also referred to as a mortgage is usually distributed to purchasers of real property or to existing property owners to raise funds. Like many other financial settlements however, mortgage loans require a list of documents including paycheck stubs, profit and loss accounts for business owners, list of assets, bank statements, mutual fund statements, automobile titles, brokerage statements, etc.
The technological limitations of current financial systems and banking applications makes it extremely difficult for banks and financial institutions to organize and include all of these documents