Government Opposes Blanket Foreclosure Moratorium

The White House today said no to a nationwide moratorium on home foreclosures, saying the move could hurt the U.S. housing market and slow its recovery.
Chicagoland Real Estate Forum has been telling you about the “robo-signing” controversy, in which lenders have been signing hundreds of foreclosure documents a day without reading or verifying them.
Sign saying: Stop Foreclosures Moratorium NowLast week, Bank of America announced it would freeze foreclosures throughout the country to make sure homes were not being seized based on false information, and many lawmakers have been calling for a nationwide moratorium on foreclosures.
Today, White House spokesman Robert Gibb said the Obama administration does not agree with that step.
“There are a series of unintended consequences to a broader moratorium,” Gibb said. “We want to take the just and necessary steps to ensure that the process is being followed legally.
“At the same time, we don’t want to see broader harm done to the housing market and to the housing recovery.”
Experts warn that a nationwide foreclosure freeze could hurt pension funds and insurance companies and make new loans more expensive.
Meanwhile, a group of at least 40 state attorneys general is expected to spearhead an investigation into the mortgage-service industry on Wednesday.
Stayed tuned to Chicagoland Real Estate Forum for the details.