40 State Attorneys General to Investigate Mortgage Fraud

10-09-2010 • GlobalEconomicAnalysis.blogspot.com

U.S. lawmakers pushed for the country's largest mortgage lenders to suspend foreclosures in all 50 states after Bank of America Corp announced on Friday it would temporarily halt evictions nationwide. BofA, the largest U.S. mortgage servicer, is the first U.S. bank to institute a nationwide freeze on foreclosures, expanding on a 23-state suspension announced last week while it conducts a review of its procedures. The foreclosure furor is erupting just weeks before November 2 congressional elections where voters look set to take out their anger at high unemployment and a sluggish economy on Democrats who currently control both the House of Representatives and the Senate. Senate Majority Leader Harry Reid, House Oversight Committee Chairman Edolphus Towns and California Attorney General Jerry Brown, who is running for governor, called on other lenders to follow Bank of America's lead.