Sen. Whitehouse joins chorus to stop foreclosures

“Until the major loan servicers demonstrate that they (1) are making every reasonable effort to keep families in their homes through loan modifications and/or forbearance; and (2) have the capacity to properly and respectfully carry out foreclosures, I ask that you impose a moratorium on all foreclosures on homes that secure the mortgages you hold or control,” he wrote Thursday to Fannie Mae President and CEO Michael Williams, Freddie Mac CEO Charles Haldeman Jr. and Federal Reserve Chairman Ben Bernanke. 

Whitehouse’s call for a national moratorium comes as Senate Majority Leader Harry Reid (D-Nev.) urges a suspension of foreclosures in Nevada and House Speaker Nancy Pelosi (D-Calif.) calls for an investigation into the foreclosure scandal that forced JPMorgan Chase, Ally Financial and Bank of America to stop foreclosure proceedings in 23 states.

Last month, it was revealed that mortgage servicers had ignored verification procedures before signing off on thousands of foreclosure documents.

The situation prompted President Obama to pocket-veto legislation that would have made it easier to close foreclosure cases by allowing authorities to recognize notarized documents from other states.