States put pressure on mortgage lenders to halt foreclosures

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States put pressure on mortgage lenders to halt foreclosures

Pressure intensifies on mortgage lenders

Reuters


By Corbett B. Daly Corbett B. Daly – Sun Oct 10, 6:21 pm ET

WASHINGTON (Reuters) – More than two-thirds of U.S. state attorneys general plan this week to launch a joint probe into charges some banks used fraudulent paperwork to kick struggling borrowers out of their homes, a source familiar with the effort told Reuters on Sunday.

Bank of America, the nation's largest mortgage servicer, an industry term for a firm that collects mortgage payments, said on Friday it would temporarily halt foreclosures nationwide as it looks into reports of shoddy paperwork.

Bank of America is the first bank to halt foreclosures in all 50 states. Bank of America, JPMorgan Chase & Co and Ally Financial Inc's GMAC Mortgage had earlier announced plans to suspend foreclosures in 23 states pending a review of foreclosure procedures.

The mortgage unit of Ally Financial, which is 56.3 percent owned by the U.S. government after a $17 billion bailout, has said employees preparing foreclosures had submitted affidavits to judges containing information they did not personally verify.



http://news.yahoo.com/s/nm/20101010/ts_nm/us_usa_foreclosures_investigation



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Governors tried to do this years ago --

Spitzer was heavily involved in giving leadership to it --

W. Bush put a quick stop to their actions!

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1. kick --