JPMorgan Chase Freezes 56,000 Foreclosures


The massive foreclosure machine that revved up to accommodate the huge backlog of mortgage defaults once again is coming to a screeching halt. JPMorgan Chase, one of the nation's largest mortgage lenders, announced on Wednesday that it was stopping court cases against troubled homeowners in 23 states to "systematically re-examine" its legal process. On the heels of a similar announcement by GMAC Mortgage last week, JP Morgan has admitted that its foreclosure processors were under so much pressure to push through thousands of mortgage defaults that they rarely, if ever, reviewed the files for accuracy. The overzealous processors, called "robo-signers" by their critics, have been targeted by Sen. Al Franken (D-Minn.), pictured left, who requested on Wednesday that regulators organize "a thorough investigation into the alleged misconduct."
For more on mortgages see these
AOL Real Estate guides:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
 

Add Your Comments


Please keep your comments relevant to this blog entry.Email addresses are never displayed, but they are required to confirm your comments. When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.


To create a live link, simply type the URL(including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted - no need to use <p> or <br> tags.


Compare Mortgage Rates

Mortgage Rates by Zillow