By Vicki Needham - 10/08/10 03:45 PM EDT
Bank of America is halting foreclosure proceedings in all 50 states after revelations that paperwork wasn't being closely examined.
The nation's largest bank will stop foreclosures beginning Saturday, a week after announcing it would suspend action in 23 states. The bank said it won't end the moratorium until a review of its practices is complete.
Congressional leaders have called for a suspension of all foreclosures following the discovery of problems with "robo-signers," middle managers who sign affidavits allowing banks to repossess homes that are in default without fully reviewing the documents.
Several managers have admitted in depositions that they signed off on thousands of foreclosures without looking at much more than the date on the forms.
The Charlotte, N.C.-based lender is the first to stop proceedings in all 50 states. J.P. Morgan Chase and Ally Financial's GMAC Home Mortgage division have put foreclosures on hold in about half of the country.
Senate Majority Leader Harry Reid (D-Nev.) and House Oversight Chairman Edolphus Towns (D-N.Y.), along with other lawmakers including Speaker Nancy Pelosi (D-Calif.), have called for a halt of activity in their states and nationwide.
Attorney General Eric Holder said earlier this week that the mortgage division of the Financial Fraud Task Force is investigating the problems.