Bank of America slows foreclosures as Fannie Mae steps in
10/02/2010 © South Florida Sun-Sentinel
Bank of America announced it is delaying foreclosures in 23 states – including Florida - - after the Associated Press reported that a bank official acknowledged in a legal proceeding that she signed up to 8,000 foreclosure documents a month and typically didn't read them.
Bank of America said late Friday it is delaying foreclosures in 23 states, becoming the third major lending institution to acknowledge mortgage documentation problems. Meanwhile, Fannie Mae stepped up efforts to hold lenders accountable, saying it will warn loan servicers to report problems with cases that may violate financial laws.
Bank of America -- one of the largest mortgage lenders in Florida and the nation's largest bank -- did not give an estimate for how many homeowners' cases will be affected in South Florida and elsewhere.
Bank of America spokesman Dan Frahm said the institution was "assessing our existing processes" and would be delaying some actions.
The Federal National Mortgage Association – commonly known as Fannie Mae -- said it is alerting 1,400 loan servicers nationwide that they would be in violation of their contracts on federally-backed Fannie Mae loans if their foreclosure processes don't comply with state and local laws.
10/02/2010 © South Florida Sun-Sentinel
Bank of America announced it is delaying foreclosures in 23 states – including Florida - - after the Associated Press reported that a bank official acknowledged in a legal proceeding that she signed up to 8,000 foreclosure documents a month and typically didn't read them.
Bank of America said late Friday it is delaying foreclosures in 23 states, becoming the third major lending institution to acknowledge mortgage documentation problems. Meanwhile, Fannie Mae stepped up efforts to hold lenders accountable, saying it will warn loan servicers to report problems with cases that may violate financial laws.
Bank of America -- one of the largest mortgage lenders in Florida and the nation's largest bank -- did not give an estimate for how many homeowners' cases will be affected in South Florida and elsewhere.
Bank of America spokesman Dan Frahm said the institution was "assessing our existing processes" and would be delaying some actions.
The Federal National Mortgage Association – commonly known as Fannie Mae -- said it is alerting 1,400 loan servicers nationwide that they would be in violation of their contracts on federally-backed Fannie Mae loans if their foreclosure processes don't comply with state and local laws.
