Texas on Monday 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 Monday on its website.
Texas Attorney General Greg Abbott's office said it initiated an investigation into foreclosures last month over concerns nationwide on how foreclosures are processed, including so-called robosigning 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. A JPMorgan spokesman declined comment and a spokesman for Bank of America 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," said agency spokesman Jerry Strickland. The state asked the servicers to reply by Oct. 15.