Texas has asked 27 loan servicers doing business in the state to voluntarily suspend foreclosures and to halt sales of properties already foreclosed upon, the Houston Chronicle reported.
Texas Attorney General Greg Abbott's office said it initiated an investigation into foreclosures last month over concerns nationwide about how foreclosures are processed, including so-called robo-signing practices.
Servicers sent the notices include Bank of America Corp. and JPMorgan Chase & Co. A complete list of those servicers wasn't available from the attorney general's office, the paper reported Monday on its website. A JPMorgan Chase spokesman declined to comment and a spokesman for B of A couldn't be reached.
"This is a demand from the attorney general's office that they thoroughly review their business practices to ensure they comply with Texas law and are not unlawfully harming Texas homeowners," agency spokesman Jerry Strickland said Monday. The state asked the servicers to reply by Oct. 15.