Updated October 13, 2010
This morning, the Attorneys General in all 50 states announced a coordinated investigation into the foreclosure crisis. They will be probing whether mortgage loan servicers submitted false affidavits regarding foreclosure documents that were never reviewed before being signed by the so-called “Robo-signers.”
According to the Washington Post, “the multistate investigation will initially focus on whether Bank of America, J.P. Morgan Chase, Ally Financial and other large mortgage companies made misleading or fraudulent statements to evict struggling borrowers from their homes.”
Last Friday, Bank of America announced it would expand its foreclosure freeze to all 50 states. J.P Morgan Chase has expanded its foreclosure freeze to 41 states, while Ally Finance (formerly GMAC Mortgage) has expanded its foreclosure freeze to all 50 states.
Three major U.S. banks have suspend foreclosures in 23 states to “amend” filed paperwork. Ally bank, Bank of America and JP Morgan Chase have halted foreclosure proceedings after admitting that there have been some processing problems. Among the problems is the use of “robo-signatures”–employees whose only task is to sign foreclosure documents without reviewing the paperwork.
Real estate expert Ilyce Glink was interviewed on Good Morning America to discuss whether or not the foreclosure freeze will help homeowners.
Watch the full story from GMA below, look for Ilyce around the 1:15 mark.
Ilyce is also updating her CBS Moneywatch blog with the latest info on the foreclosure freeze, here’s the link.
On her Moneywatch blog, Ilyce writes, “I suppose, in the best of all worlds, slowing down or freezing foreclosures might actually force lenders to take a harder look at ways they might keep folks in their homes, like doing more loan modifications. That would reduce the so-called “shadow inventory” and keep housing values from crashing again. Again, that’s the best possible scenario. I think it’s too soon to tell.”
The News Hour with Jim Leher Picked up the Good Morning America Clip:
Of course, I’m not a real estate analyst in the traditional Wall Street sort of way. Anyway, they used it. And, in fact, they used lots of the footage from the Good Morning America piece. Interesting.