Industry NewsMortgage

BofA halts foreclosures in 23 states

Fannie, Freddie instruct loan servicers to review foreclosure procedures

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Bank of America has joined GMAC Mortgage and JP Morgan Chase in suspending foreclosure proceedings in 23 states where courts have jurisdiction over foreclosures, to check that it followed correct procedures in filing affidavits.The latest development in the "robo-signing" controversy follows allegations that workers at GMAC Mortgage and JP Morgan Chase signed court affidavits that contained information they had not personally verified, opening the door to potential legal challenges.A Bank of America employee acknowledged in a legal deposition taken in February that she signed 7,000 to 8,000 foreclosure documents a month that she typically did not read, the Associated Press reported."We have been assessing our existing processes," Bank of America said in a statement. "To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the...