Friday, October 08, 2010

Gov't Oversight Chairman seeks nationwide foreclosure moratorium

Rep. Edolphus Towns (D-NY), chairman of the House Committee on Oversight and Government Reform, called for top banks to suspend foreclosures and for New York Attorney General Andrew Cuomo to investigate foreclosure practices.


Towns sent a letter to Ally Financial (GJM: 24.03 +1.14%), JPMorgan Chase (JPM: 39.52 -0.95%), Bank of America (BAC: 13.31 -0.60%), Wells Fargo (WFC: 26.00 -1.14%), Citigroup (C: 4.18 +1.95%), U.S. Bank (USB: 22.36 -0.22%), PNC Financial (PNC: 53.10 -1.26%), PHH Corp. (PHH: 20.29 -7.77%) and SunTrust Banks (STI: 26.90 -2.68%).

Ally, JPMorgan Chase and BofA have admitted employees signed foreclosure affidavits without verifying information with legal documents and without a notary present. Each then suspended foreclosures in 23 states in order to review cases.

The three servicers have denied fraud or any misstated facts in the documents.

Towns joins a list of AG offices and politicians calling for investigations and moratoria.

"Without a doubt, losing a home can be one of the most traumatic experiences faced by an American family," Towns said. "Anyone forced to go through this process should be treated fairly. Sadly, it appears this may not have been the case for some borrowers."

Read on.

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