JPMorgan Suspends Foreclosures

JPMorgan, one of the largest US mortgage servicers, is suspending over 50,000 home loan foreclosures across 23 states while it determines whether its employees have processed the the paperwork properly. The company is asking courts to delay foreclosure judgements while the bank reviews and possibly resubmits its statements. The impending review may take several weeks.

This is the second bank in the last thirty days to take such an action. ALLY Financial revealed last week that some of its employees had not personally checked information in housing foreclosure documents verifying who owned the foreclosure notes. They had signed affidavits without personally reviewing the underlying records. JPMorgan is taking steps to review its handling of cases otherwise there is always the possibility of losing a judgement in its favor.