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Congresswoman Waters Reiterates Call for Suspension of Foreclosures

October 8, 2010
Press Release

Congresswoman Maxine Waters (D-CA) today reiterated her call for a moratorium on foreclosures while the appropriate federal regulators investigate fully the illegal and improper actions by mortgage servicers and the servicers themselves review their procedures.

"With concerns about tens of thousands of foreclosures occurring in violation of standard procedures and possibly even illegally, and many American families wrongly losing their homes as a result, a nationwide suspension of all foreclosures is now urgently needed," said Congresswoman Waters, who chairs the Housing and Community Opportunity Subcommittee. 

Three of the nation's largest mortgage servicers – GMAC, JP Morgan Chase and Bank of America – had previously suspended foreclosures in 23 states where courts have jurisdiction over foreclosures amid revelations that their employees had signed and filed thousands of affidavits in order to foreclose on properties without giving them appropriate review. 

Congresswoman Waters wrote letters to the CEOs of major financial institutions including Citigroup, HSBC, PNC, U.S. Bancorp and Wells Fargo asking their mortgage units to suspend foreclosures until they can thoroughly review their procedures.

Subsequently, Bank of America has announced it is suspending foreclosures in all 50 states in order to further review and assess its practices and decisions related to foreclosures, and PNC has announced it will suspend most foreclosures and evictions in those 23 states for 30 days so it can review whether it has complied with state laws with the documents submitted to state courts.

Congresswoman Waters said, "While I am pleased that Bank of America has suspended all foreclosures, it is clear to me that until all mortgage servicers suspend all foreclosures – in both judicial and non-judicial states – America's homeowners and our housing market will continue to be at risk. A foreclosure suspension is not enough, but it is an important and necessary step at this time.  I will continue to seek solutions to our nation's foreclosure crisis so we can protect homeowners."

Congresswoman Waters also sent letters to Treasury Secretary Timothy Geithner, Federal Housing Finance Agency Acting Director Edward DeMarco and Federal Housing Administration Commissioner David Stevens asking each of them to ensure that their agencies fully use their authority to implement a suspension of all foreclosures, investigate the mortgage servicing companies, enforce regulations and take steps to monitor compliance.

The text of those letters and additional information about the Congresswoman's leadership on foreclosure prevention can be found by clicking here.