Thursday, October 7, 2010

Minnesota AG SWANSON: suspend foreclosures

Lenders asked to suspend foreclosures | "'We want to know if what's happening elsewhere is happening here,' Swanson said.

'If it is, that's very troubling and very traumatic. It is an extreme remedy to take someone's home, and we want to make sure they are crossing their 't's' and doing their due diligence.'

A spokesman for J.P. Morgan declined to comment on whether it would comply with Swanson's request to halt foreclosures. Officials at Bank of America and GMAC did not respond to questions late Wednesday.

State regulators in Connecticut, Florida, Iowa, Illinois, North Carolina and Texas have also said they are investigating whether foreclosures may have been handled improperly.

However, Swanson has gone a significant step further than most other regulators by demanding that multiple lenders halt their foreclosures at once. Her action increases the likelihood that other state attorneys general will take similar action, compelling large lenders and loan servicers to stop foreclosure proceedings."

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