Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. agreed to suspend foreclosures while the Obama administration crafts a housing plan to modify mortgages for troubled borrowers. Effective Friday, BofA will delay foreclosures on owner-occupied primary residences until March 6. That date remains flexible, says spokeswoman Jumana Bauwens.
“We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by JPMorgan Chase,” the company’s chief executive, Jamie Dimon, said in a letter Thursday to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee. The moratorium on new foreclosure actions will remain in effect through March 6 and is similar to a 90-day foreclosure freeze JPMorgan announced Oct. 31.
Citigroup halted foreclosures through March 12, or when a plan is completed, the company said today in a statement. Wells Fargo said its moratorium was in place until a plan is announced. The other lenders said foreclosures will be halted on owner- occupied homes until March 6. JPMorgan Chief Executive Officer Jamie Dimon disclosed his actions in a letter to House Financial Services Committee Chairman Barney Frank released today
Bank of America CEO Ken Lewis indicated his firm would consider freezing its foreclosure activity. “If we could put a time frame on it…say it’s two weeks or three weeks, we would do that,” he told lawmakers. Some lawmakers have suggested Treasury Secretary Geithner “strongly encourage” banks receiving government capital through the controversial $700 billion Troubled Asset Relief Program, or TARP, to temporarily stop foreclosures.
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