N.C. joins states calling for foreclosure moratorium
The North Carolina attorney general's office expanded its investigation into improperly prepared paperwork for foreclosures to 15 mortgage companies and ordered them to suspend foreclosures in the state.
Attorney General Roy Cooper's announcement Wednesday follows similar industry-wide moratoriums issued by his counterparts in Texas and Connecticut. California and Massachusetts have issued more limited directives, calling on specific lenders to freeze foreclosures.
"If mortgage companies are using potentially unlawful practices to push through foreclosures in North Carolina, that needs to stop," Cooper said in a statement. "Foreclosures have to happen when people don't pay, but homeowners deserve a fair shot at keeping their homes when possible."
North Carolina's investigation began in late September following revelations that employees at Ally Financial's GMAC mortgage unit may have routinely signed off on foreclosure affidavits without properly reviewing them or verifying their accuracy.
North Carolina officials said they are concerned that if foreclosures are not being properly reviewed by lenders, some homeowners may not get a fair chance at loan modifications that could save their homes.
The companies under investigation in North Carolina:
· Bank of America
· Wells Fargo
· J.P. Morgan Chase
· Citi Mortgage
· SunTrust Mortgage
· PHH Mortgage
· OneWest Bank
· PNC Mortgage
· Aurora Bank
· US Bank Home Mortgage
· MetLife Home Loans
· BB&T Mortgage
· American Home Mortgage Servicing
· Ally Financial GMAC
More in The Washington Post:
On Tuesday, House Speaker Nancy Pelosi and other members of the California delegation called for a federal investigation of mortgage foreclosure proceedings.
Ariana Eunjung Cha
| October 6, 2010; 10:59 AM ET
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