By Vicki Needham - 10/11/10 09:10 PM EDT
Four banks — Bank of America, JP Morgan Chase, Ally Financial's GMAC mortgage division and PNC Financial — have all suspended home seizures in the 23 states where courts oversee foreclosures. PNC added itself to the list on Friday, while Bank of America announced it was halting foreclosures in all 50 states to examine its process.
The Obama administration is asking banks to move quickly to determine whether mistakes were made in foreclosure documentation, while holding back on a call for a national freeze on foreclosures.
The main issue is with "robo-signers," middle managers who sign affidavits allowing banks to repossess homes that are in default without fully reviewing the documents.
Several of those managers have admitted in depositions that they signed off on thousands of foreclosures without looking at much more than the date on the forms.