Major Mortgage Firms Suspending Foreclosures

New York, NY, Oct. 8, 2010--Three major mortgage lenders — Bank of America, GMAC Mortgage and JPMorgan Chase — have said they are suspending foreclosures in the 23 states where they first need a judge’s approval, the New York Times reported today.

They are also waving off Fannie Mae from selling any of the foreclosed homes whose loans they sold to Fannie.

The companies say they are reviewing their operations after disclosures that employees signed documents without determining the accuracy of the material, as is required by law.

Those reviews are throwing into limbo hundreds of thousands of foreclosures and pending home sales, the newspaper said.

Distressed properties, many of which are in foreclosure, make up about a third of all home sales. Analysts say foreclosures are going to dry up, further hampering the housing market.