Obama Administration Doesn't Support Foreclosure Moratorium
"We believe freezing foreclosures for all banks in all states, whether we have reason to believe them to be in error or not, is simply not the prudent step to take in this fragile housing market," Federal Housing Administration Commissioner David Stevens said in an e-mail to the Washington Post.
But the administration does say it is making sure the banks speed up their review process.
Bank of America said Friday that it will expand its foreclosure freeze nationawide. They had previously stopped foreclosures in the 23 states that require judge approval before a foreclosure can move forward. JPMorgan Chase & Co., Ally Bank's GMAC Mortgage unit and PNC Financial have halted foreclosures in only those 23 judge approval states.
Some say the administration's decision, though, doesn't matter, because states are clamping down on lenders.
An Inman News article says: "Federal regulators and attorneys general in several states have already put lenders on notice that they should discontinue foreclosures unless they are sure their procedures are in full compliance with the law."