Industry NewsMortgage

Obama doesn’t support foreclosure moratorium

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The Obama administration does not support a national foreclosure freeze, but attorneys general in as many as 40 states are reportedly planning this week to announce a joint investigation of loan servicers' foreclosure practices that could have similar repercussions.The fallout from the "robo signing" scandal, initially confined to 23 states where courts have jurisdictions over foreclosures, expanded in dramatic fashion Friday with Bank of America's announcement that it would stop foreclosure sales in all 50 states until it completed a review of its foreclosure procedures.Bank of America and four other loan servicers have slowed or halted some foreclosure proceedings in 23 judicial foreclosure states in the wake of allegations that workers processing files for the companies signed affidavits that contained information they had not personally verified.Other loan servicers taking action to date are GMAC Mortgage, JP Morgan Chase, PNC Financial Services Group Inc. and Litton Loan...