Bank Of America Issues Foreclosure Stop Order For 50 StatesBy Victor Hatley on October 9, 2010, 6:36 am Posted in Finance News
Yesterday, Bank Of America (NYSE:BOA), one of the largest bank in the U.S. extended the foreclosure desist order to include all 50 states. Until this move the banks affected by this foreclosure fiasco had inirially only stopped foreclosures in the 23 states where a judge has final authority. This may be in answer to Senator Reid’s letter. Earlier this week 30 Congressmen…and women had asked that the Banking industries practices be looked at. This request was answered by the justice department setting up a commission to look into the questionable practices.
Congressional Leadership Moving On This
Thursday, Senate Majority Leader Harry Reid sent a letter to the big banks that are involved in this scandal, Bank Of America (NYSE:BOA), Wells Fargo (NYSE:WFC), JP Morgan Chase (NYSE:JPM) and Ally Financial (A GMAC company), asking them to stop foreclosures in all 50 states due to the paperwork scandal that is plagueing the nation. In a statement made later about the subject, he said, “I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course, I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states, as well.” It isn’t known if the other banks are planning on following BoA’s suit, but announcements on the subject are expected soon.
Now A Congressional Hearing
Senate Banking Chairman Chris Dodd announced the scheduling of a committee meeting next month on this issue. Senator Dodd ssaid in a statement “I am deeply troubled by recent revelations and allegations of practices by some of the nation’s largest lenders. Regulators at the federal, state and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law.” The meeting is scheduled for the second day of the lame-duck session, Nov. 16th.