The Obama administration has hardened its opposition to a broad moratorium on home foreclosures, amid worries it could unleash a “series of unintended consequences†and further slow the US recovery.
Over the past several weeks, some of America’s largest lenders – including Bank of America and JPMorgan Chase – have had partially or fully to halt foreclosure proceedings amid revelations of shoddy paperwork. GMAC on Tuesday became the latest lender to examine foreclosures in all 50 states. Wells Fargo also said it had launched a review of some of its foreclosures.
Regulators and law enforcement authorities have begun to investigate, with 40 state attorneys-general expected to announce a joint inquiry of foreclosure practices on Wednesday. Meanwhile, some high-profile lawmakers, including Harry Reid, the Senate majority leader facing a tough re-election battle in Nevada, have called for a temporary suspension in all foreclosure proceedings.
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