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Friday, October 8, 2010

Bank of America Halts all Foreclosures...all 50 states

After foreclosing on a Ft. Lauderdale home that did not have a mortgage, Bank of America realizes its internal procedures are corrupted. Maybe they returned the $45 billion of TARP funds a bit too early. Maybe a few bucks on a software upgrade was in order...

By Dan Fitzpatrick and Damian Paletta
The Wall Street Journal

Bank of America is placing a moratorium on all foreclosure proceedings and sales across the U.S. amid mounting political pressure on big U.S. banks to examine foreclosure-documentation problems.

The nation's largest bank by assets is the first financial institution to stop all foreclosure actions amid revelations that the banking industry had used "robo-signers," people who sign hundreds of documents a day without reviewing their contents, when foreclosing on homes. Bank of America, J.P. Morgan Chase & Co. and Ally Financial Inc. last week postponed foreclosures in 23 states where a court's approval is required to foreclosure on a home.
The decision by Bank of America to extend its postponement to all 50 states takes effect Saturday. The bank doesn't intend to lift the moratorium until its assessment of all documentation is complete, a spokesman said.

On Thursday, Rep. Edolphus Towns (D, N,Y.), chairman of the House oversight committee, became the latest lawmaker to call for a nationwide moratorium on foreclosures.

Bank of America Chief Executive Officer Brian Moynihan plans to be in Washington, D.C., Friday for an appearance before the National Press Club, but a person close to him said he isn't expected to discuss the moratorium decision.

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