Diana Olick and Guy Cecala discuss ramifications of foreclosure moratorium

Bank of America has 1 in every 5 mortgages in the United States and they just ceased foreclosure activity in all 50 states. The self inflicted foreclosure debacle naturally goes political as Harry Reid calls for a foreclosure moratorium in all 50 states. Bottom line is many if not most of these properties will eventually end up in foreclosure however, during the interim circus, this is simply going to escalate to mondo ugly. Unless FASB creates another accounting model,  this is going to become very challenging for the banks to continue their mortgage portfolio mark-to-model valuation.