Bank of America Corp. is placing a moratorium on all foreclosure proceedings and sales across the U.S. due to mounting political pressure on large U.S. banks to examine foreclosure-documentation problems.
The nation's largest bank by assets is the first financial institution to stop all foreclosure actions due to revelations that the banking industry had used "robo-signers" — people who sign hundreds of documents a day without reviewing their contents — when foreclosing on homes. Bank of America, JPMorgan Chase & Co. and Ally Financial Inc. last week postponed foreclosures in 23 states where a court's approval is required to foreclose on a home.
The decision by Bank of America to extend its postponement to all 50 states takes effect Saturday. The bank doesn't intend to lift the moratorium until its assessment of all documentation is complete, a spokesman said.
On Thursday, Rep. Edolphus Towns, D-N,Y., chairman of the House oversight committee, became the latest lawmaker to call for a nationwide moratorium on foreclosures.
Bank of America Chief Executive Brian Moynihan plans to be in Washington, D.C., Friday for an appearance before the National Press Club, but a person close to him said he isn't expected to discuss the moratorium decision.