Bank of America Halts All Foreclosure Sales
Bank of America Corp., the biggest U.S. lender, extended a freeze on foreclosures to all 50 states as concern spread among federal and local officials that homes are being seized based on false data.
"We will stop foreclosure sales until our assessment has been satisfactorily completed," the Charlotte, North Carolina- based company said today in a statement. "Our ongoing assessment shows the basis for foreclosure decisions is accurate."
Bank of America, JPMorgan Chase & Co. and Ally Financial Inc. already froze foreclosures in 23 states where courts supervise home seizures. Bank of America's new policy extends its moratorium to the entire nation. Lenders are being pressed by lawmakers to halt foreclosures amid allegations that employees used unverified or false data to speed the process.[pullquote quote=""We will stop foreclosure sales until our assessment has been satisfactorily completed."" credit="Bank of America"]
PNC Financial Services Group Inc. halted sales of foreclosed homes for a month to review documents in its mortgage servicing procedures, according to an Oct. 4 memo the bank sent to lawyers handling the lender's foreclosures.
Bank of America rose 12 cents, or 0.9 percent, to $13.43 at 11:58 a.m. in New York Stock Exchange composite trading. The shares have lost 12 percent this year through yesterday.
Source: AP
