Governor calls on top lenders to follow suit with Bank of America and suspend foreclosures in Michigan pending an investigation and to help Michigan’s Hardest Hit homeowners
LANSING, MI – October 18, 2010 – (RealEstateRama) — Governor Jennifer M. Granholm yesterday called on the nation’s top lending institutions that service mortgages in Michigan to suspend all foreclosures pending investigation of possibly fraudulent foreclosure filings. The governor also repeated her call for the nation’s top lenders to fully participate in the Michigan’s Helping Hardest Hit Homeowners Fund to help homeowners avoid foreclosure.
“Given recent revelations by major lenders about possibly fraudulent foreclosure filings, I am calling on the nation’s largest lenders doing business in Michigan to immediately suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in homes foreclosed upon, pending an investigation by state officials,” Granholm said. “I am also calling on Ally Financial, Bank of America, Citigroup, JPMorgan Chase, PNC, and Wells Fargo to step up to the plate and fully participate in Michigan’s Hardest Hit Homeowners Fund to help Michigan families avoid foreclosure.”
In recent weeks, major lenders including Ally Financial, JPMorgan Chase, and Bank of America have acknowledged that certain employees, known as “robosigners,” had engaged in possibly fraudulent practices that may have been in violation of Michigan law. Examples of these practices include signing documents and affidavits used in foreclosure proceedings without proper review or personal knowledge of the facts, and filing documents that do not accurately reflect loan payments, charges, and advances.
Repeatedly, the governor has also called for the nation’s top lenders to participate in the Michigan’s Hardest Hit Homeowners Fund to help keep families out of foreclosure. In letters sent to Bank of America, Citigroup, JPMorgan Chase, PNC, and Wells Fargo, the governor urged them to join with the over 100 banks, community banks, and credit unions who are participating in the Hardest Hit Fund.
The governor also acknowledged JPMorgan Chase’s participation in one of three Hardest Hit programs, providing payment assistance to currently unemployed homeowners, but called on JPMorgan Chase to participate in the other two Hardest Hit programs. Those two Hardest Hit programs provide emergency rescue funds of up to $5,000 for homeowners who have fallen behind due to an involuntary inability to pay, such as a medical disability, and provide funds for principal reductions for homeowners who can no longer afford mortgage payments due to a reduced household income.
“These disconcerting revelations deserve your immediate attention,” Granholm wrote in her letter to the banks. “Accordingly, I look forward to your response by November 1, 2010.”
A letter was sent to Bank of America yesterday acknowledging its nationwide suspension of certain foreclosures, and urging the bank to continue its suspension until investigations are completed. Letters demanding the immediate suspension of all foreclosures, foreclosure sale proceedings, and evictions from foreclosed homes went out yesterday to: Ally Financial, Citigroup, JPMorgan Chase, PNC, and Wells Fargo.
For more information about the Helping Hardest Hit Homeowners Fund, visit: http://www.michigan.gov/HardestHit.
The letters sent by the governor calling for an immediate suspension of foreclosures can be found below.
Contact:
Katie Carey 517-335-6397
