Obama Still Hesitant To Freeze Foreclosures Nationwide
On Wednesday, a federal regulatory committee called on lenders to refer possible cases of fraud to the authorities, fix problems, and check foreclosure processes.
In response, attorneys general from all 50 states announced Wednesday they would jointly investigate the foreclosure processes of lenders, including Bank of America Corp., JP Morgan Chase and Co., and Ally Financial Inc. The investigation will look into whether these lenders "robo-signed" foreclosure documents, failing to verify them.
Last Friday, Bank of America Corp. expanded its foreclosures freeze to all 50 states so they could examine the documents. Other lends have also frozen foreclosures in some states.
The Los Angeles area is one of the hardest hit regions by foreclosures with foreclosed homes accounting fore nearly 40 percent of homes sold.
Read more on the foreclosure crisis here.