In a Senate hearing Tuesday, Bank of America (BAC) vowed that it would improve its foreclosure operations and policies. The move, an attempt to ward off documentation problems that caused the bank to halt foreclosure proceedings in October, was announced the same day that JPMorgan Chase (JPM) said it also may have made procedural mistakes related to foreclosures.

Barbara Desoer, president of Bank of America's home loans and insurance operations, promised that every foreclosure affidavit would be properly reviewed and notarized, adding that the bank is replacing previously filed documents for as many as 102,000 pending foreclosure cases that haven't gone before a judge. She added that the bank's records were accurate and that it didn't mistakenly foreclose on any properties.

"Even though our review has indicated the basis for our foreclosure decisions has been accurate, we have identified areas for improvement as a result of our intensive review," Desoer said in her testimony to the U.S. Senate Banking Committee. "These changes in the foreclosure process include, among other things, a new affidavit form and additional quality control checks."

Robo-Signing Mess

The hearing comes as federal and state regulators are probing whether financial institutions improperly filed foreclosure documents amid a rush to process them. Bank of America, JPMorgan Chase and Ally Financial's GMAC (GMA) Mortgage division, which collectively service $6.4 trillion in mortgages, all are under investigation.

In recent weeks, several financial institutions have delayed foreclosures to evaluate the possibility that the sheer volume of documents prevented bank officials from reading, verifying or notarizing the documents they were signing. In October, only 10 days after Bank of America halted foreclosures in all 50 states, it said it would begin preparing the documentation to resume foreclosures in 23 of those states.

Also in October, JPMorgan Chase broadened a review of its foreclosure process to about 115,000 cases in 41 states, and GMAC Mortgage said it would review its foreclosure procedures in all 50 states. David Lowman, who runs JPMorgan's mortgage operations, Tuesday told the Senate Committee that bank executives may have signed foreclosure affadavits without verifying them. But like Bank of America, JPMorgan also claims it didn't improperly foreclose on any properties.


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crimson00king

Obama should keep his promise to Americans and say NO TAX BREAKS FOR THE RICH he said he would tax 250 thousand per year. Contact the White House your Senators and your congressmen and tell them Americans say NO EXTENTIONS PERIOD.

November 30 2010 at 3:14 PM Report abuse rate up rate down Reply
sgentilejr

Did you know Colgate toothpaste in Made in Mexico?? No you did not know because you never look at the packages or labels to see where what you buy is made. Little things add up fast. Buy Colgate and help eliminate USA jobs or buy another brand that is made here and help to create jobs___It is you choice. CONSUMERS are the Economy. How you spend your money can create or can give jobs away. But please____Don't cry when you cannot find a job and your children are starving to death when you are driving a foreign car, and you are wearing made in China clothing, made in Korea shoes and you buy food products made in France Italy, Mexico, Brazil etc.

November 17 2010 at 4:07 AM Report abuse rate up rate down Reply