The really scary thing is this has been happening with a FEW national banks for a FEW years as a matter of fact, the NEW Thing about it is the one you are mentioning is having the borrowers sign an "affidavit" as if that is going to save their rear-ends.  Anyone here in MA knows it is a race-to-record state and that the 1st on record is the 1st paid.  So an affidavit saying "I swear!" isn't going to throw this new loan into first place come foreclosure time...no matter what rights they claim they have. 

2ndly... this is where as an examiner I have found people to literally have 4 open mortgages on record.  1st, 2nd, 3rd and 4th place.....

by doing this "affidavit" and not performing a title search for HELOC or 2nd loans... ultimately the banks could be setting up the borrowers for foreclosure by possibly over extending them.... THAT is no laughing matter...!!

adrienne