Answer by Kathleen Blanchard: If the bank is somehow making it appear that individual documents were signed by somehow applying a signature taken from another document, that would be fraud, forgery, bank fraud, etc.
If an unsigned document was somehow altered to make it "legally" part of another document that was signed in an attempt to get past a missed signature, that would also be fraud, forgery, etc.
Even if the customer supposedly authorized the bank to place his signature on the security agreement, the bank should protect itself and obtain the customer's actual signature.
Such a forgery can throw the collectibility of the entire loan into question. The bank needs to review the situation with legal counsel to determine how to proceed.
Answer by Dan Persfull: There is potential cause for a SAR filing on all parties involved that should also be considered in the investigation of what took place.
First published on BankersOnline.com 8/15/11