Bank of America Corp. is halting foreclosures and sales of foreclosed properties in all 50 states, pending a review of its internal processes.
BofA, the largest mortgage servicer in the country, is the first U.S. bank to suspend foreclosures in all 50 states. The step comes amid a growing furor over how the largest U.S. mortgage lenders are repossessing the homes of delinquent borrowers.
Critics contend the banks’ use of "robo-signers” and other automated processes is unfairly pushing residents out of their homes.
A spokesman for Charlotte, N.C.-based BofA defended the bank’s previous foreclosures.
"We will stop foreclosure sales until our assessment has been satisfactorily completed,” the spokesman, Dan Frahm, said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.”
Last week, BofA, JPMorgan Chase & Co and Ally Financial Inc’s GMAC Mortgage announced plans to suspend foreclosures in 23 states pending a review of foreclosure procedures.