Washington (CNN) - The Obama administration opposes a moratorium on home foreclosures, but wants problems involving improper paperwork resolved as quickly as possible, senior adviser David Axelrod said Sunday.
"I'm not sure about a national moratorium," Axelrod said on the CBS program "Face the Nation." He said valid foreclosures with proper paperwork should go forward, and that questionable foreclosures need to be addressed right away.
"Our hope is that this moves rapidly and that this gets unwound very, very quickly," Axelrod said.
On Friday, Bank of America announced it was halting foreclosure sales in all 50 states as part of a widening investigation into flaws in the process.
The announcement came a week after the nation's largest bank said it was freezing home foreclosures in 23 states where foreclosures must be approved by the courts.
Ally Financial, previously known as GMAC, the finance arm of General Motors, has also paused foreclosures in the 23 states, and JPMorgan Chase announced last week that it will also halt proceedings for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files.
State attorneys general have stepped up pressure on banks after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, a process now known as "robo-signing."
Ohio's attorney general has filed a lawsuit against Ally Financial and its subsidiary GMAC Mortgage for allegedly submitting fraudulent documents in hundreds of foreclosure cases across the state.
Senate Majority Leader Harry Reid, D-Nevada, called on major mortgage servicers to consider halting foreclosures in all 50 states in a statement released Friday.
"It is only fair to Nevada homeowners to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly," Reid said.
Sen. Christopher Dodd, D-Connecticut and the chairman of the Senate Banking Committee, announced Friday that he will hold a hearing to investigate allegations of improper mortgage servicing and foreclosure processing on November 16, the day after the Senate returns from recess for the congressional elections.
On Thursday, the White House said that President Barack Obama won't sign a bill that could have made it easier for courts to clear foreclosures. The bill would have required federal and state courts to recognize documents that were notarized in other states.
- CNN's Tom Cohen and CNNMoney's Charles Riley contributed to this report.
Economy is growing slow that is good but we don’t want banks to put more houses in the market
Banks I have money doesn’t want to lend let them keep the houses for while
Is there any question, at this late date, that owner occupied single dwellings should NOT be foreclosed on. All of the effects are negative for each party in the transaction (bank & consumer) to say nothing of balloning homelessness costs, depressed housing prices continuing the spirial...but beyond economics resides the tremendous human pain and suffering involved. If forclosures continue all of us should consider Boycotting BIG BANKS, the populist answer for Too Big Too Fail!
Foreclosure is not evil. It is the greatest friend of somebody trying to borrow money to buy a home. It allows the lender to justify giving someone the money to buy and own a home. Until someone comes up with a better mechanism besides paying cash, it is a practice that needs to continue.
But for now, expect the ability to borrow money from a bank to buy a home for yourself and your family to become even more difficult than it is right now. Expect home values to get lower than they are. Expect rents to go up. Are you happy yet?
Part of the foreclusure debate is that the banks who loaned the money were the cause of the loss of value of American homes. They pumped up the housing bubble and sold the hot paper as fast as they could, knowing that the collapse was inevitable. They did very well for themselves. It was a sleazy way to do business. America's corporations pay America's marketing firms to praise their devotion to "excellence" and their interest in the welfare of their customers. It's time we held them to their lies. America's very disappointing business leadership is not composed of geniuses like Edison or Ford. They are just little salesmen who don't know how their product is made or how it works. They know how to cut costs by laying off workers. They know how to make deals. They know how to bribe Congressmen.
I think we should outsource our corporate CEO positions to graduate students in India. They can't do any worse and they will work a lot cheaper.
Chris Dodd is going to hold hearings on why mortgage companies aren't ready foreclosure documents thoroughly? Is that not the definition of irony? I believe there were passages of TARP II that Dodd was unfamiliar with because he didn't read it thoroughly enough (excluding the clauses he said he didn't read, but turned out to have sponsored, of course). The hypocrisy of this Congress as a whole is staggering.
Don't worry, our monetary value can't hold anymore foreclosure, they must be put on hold.
Homes that can legally be foreclosed on should go forward and be put back on the market. The President is worried that these homes will stagnate for years when they could be purchased affordabley and keep the economy moving.
Why do I have the feeling that if I couldn't make the payments on my house I would be foreclosed on right away with no leniency , no moratorium, no help? And the people who do get leniency or moratoriums, somehow I (and you) probably end up paying for it.