Bank of America halts foreclosures in 23 states

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Bank of America is the latest in a string of banks to freeze home foreclosures in 23 states as it investigates whether there were flaws in its process.

"We have been assessing our existing processes," Bank of America said in a statement. "To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures."

States under BofA review
Connecticut Delaware
Florida Hawaii
Illinois Indiana
Iowa Kansas
Kentucky Louisiana
Maine Nebraska
New Jersey New Mexico
New York North Dakota
Ohio Oklahoma
Pennsylvania South Carolina
South Dakota Vermont
Wisconsin

Bank of America (BAC, Fortune 500) did not have an estimate of the number of homeowners that will be affected by the delayed process.

The announcement comes two days after JP Morgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files.

A Chase spokesman said it is working with outside counsel over the next few weeks to review its process to confirm that it meets the appropriate standards.

Last week, Ally Financial, previously known as GMAC, the finance arm of General Motors, said it will also pause foreclosures in the 23 states.

Mortgage lender Freddie Mac said Friday that it is "deeply concerned" with the recent reports and said the alleged practices are not in compliance with its guidelines.

"We expect to provide instructions to our servicers later today that are intended to ensure that their foreclosure processes are in compliance with state law and Freddie Mac's servicing requirements," the lender said in a statement. "It's essential that the industry work together to protect borrowers' rights and ensure the integrity of the foreclosure process." To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed4.31%4.30%
15 yr fixed3.74%3.69%
5/1 ARM4.14%4.15%
30 yr refi4.29%4.27%
15 yr refi3.72%3.66%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in: New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
Index Last Change % Change
Dow 25,309.99 347.51 1.39%
Nasdaq 7,337.39 127.30 1.77%
S&P 500 2,747.30 43.34 1.60%
Treasuries 2.87 -0.05 -1.58%
Data as of 6:30pm ET
Company Price Change % Change
Chesapeake Energy Co... 3.20 0.00 0.00%
Bank of America Corp... 32.03 0.34 1.07%
General Electric Co 14.49 -0.13 -0.89%
Micron Technology In... 46.53 2.28 5.15%
Hewlett Packard Ente... 18.14 1.73 10.54%
Data as of Feb 23

Sections

The court will decide whether a digital communications provider has to comply with a U.S. search warrant for user data if the information is stored outside of the country. More

Three Senate Democrats are demanding Mick Mulvaney, the interim chief of a consumer watchdog bureau, to explain -- yet again -- why he plans to weaken consumer protections against payday lenders. More

Snap CEO Evan Spiegel became a billionaire by proving people wrong. Now the fate of his company may rest on doing it again. More