Bank of America Suspends Foreclosures While It Reviews Faulty Documentation

With foreclosure files inundating banks nationwide, due diligence in processing has become a challenge. Bank of America has joined JPMorgan Chase and Ally Financial in suspending foreclosure actions …

With foreclosure files inundating banks nationwide, due diligence in processing has become a challenge. Bank of America has joined JPMorgan Chase and Ally Financial in suspending foreclosure actions in all 50 states. See the following article from HousingWire for more on this.

Bank of America (BAC: 13.18 -0.98%) will stop foreclosure sales in all 50 states as it extends its review into faulty affidavits.

On Oct. 1, BofA suspended foreclosures in 23 states, admitting employees signed affidavits without verifying information within the documents or without a notary present. Ally Financial (GJM: 24.02 -0.04%) and JPMorgan Chase (JPM: 39.31 -0.53%) suspended foreclosures before BofA but have not extended their moratoriums.

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“Bank of America has extended our review of foreclosure documents to all fifty states.  We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate,” Dan Frahm, a spokesman for BofA told HousingWire.

As of March, BofA’s servicing portfolio totaled 13.7 million mortgages for an unpaid principal balance of roughly of $2.1 trillion, according to Moody’s Investors Service.

Neither Wells Fargo (WFC: 25.95 -0.19%) or Citigroup (C: 4.19 +0.24%) have confirmed suspensions either. A spokesman at PNC Financial (PNC: 53.08 -0.04%) told HousingWire that the bank is communicating with lawyers to discuss options regarding this issue.

A spokesman for JPMorgan Chase declined to comment on a possible extension of its foreclosure suspension.

Since Ally Financial suspended foreclosures in September, numerous lawmakers, state attorneys general offices and regulators have called for investigations, nationwide moratoria and even filed full-scale lawsuits.

“We continue to serve the interests of our customers, investors and communities.  Providing solutions for distressed homeowners remains our primary focus,” Frahm said.

This article has been republished from HousingWire. You can also view this article at
HousingWire, a mortgage and real estate news site.

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