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WASHINGTON (Feb. 13) — JPMorgan Chase & Co. and Citigroup Inc. are halting home foreclosures while the Obama administration develops its plans to help the U.S. housing market.

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Also: Fannie Mae, Freddie Mac Suspend Foreclosures Again
From DailyFinance: The Logic Behind the Halt

JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.

Citigroup's foreclosure moratorium applies to all "Citi owned first mortgage loans that are the principal residence of the customer as well as all loans Citi services where we have reached an understanding with the investor" until President Barack Obama's administration has finalized the details of the loan modification program or March 12, whichever is earlier, according to a company release. New York-based Citi's action expands on a similar effort that it started in November.

Frank earlier this week called on the mortgage industry to enact such broad foreclosure moratoriums.

The administration is working on a plan to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans.

"We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages," Dimon wrote.

Government-controlled mortgage finance companies Fannie Mae and Freddie Mac suspended foreclosure sales during the winter holidays and have halted evictions from foreclosed properties until next month. And earlier this week, John Reich, director of the Office of Thrift Supervision, urged the more than 800 thrift institutions nationwide to do the same.

Meanwhile, the administration is considering spending taxpayer dollars to cut monthly payments for homeowners on the verge of foreclosure.

Still, deciding who would qualify would be a challenge, especially as foreclosures continue to soar. More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.

The administration also is expected to back a push in Congress — but opposed by the mortgage industry — to let bankruptcy judges alter the terms of primary home loans. Earlier this week, Obama said it "makes no sense" that judges are not allowed to do so. The mortgage industry argues that this prohibition allows lenders to charge lower rates.

Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

2009-02-13 11:43:31

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PhoenixL46 12:52:47 PM Feb 15 2009

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THE REASON NO ONE STOPPED THIS CLUSTERF*CK BEFORE IT MELTED DOWN WAS CAUSE IT WAS ONE BACK-SCRATCHIN', NECK BITING HOLLAR OUT LOUD MONEY MAKIN' MACHINE....IF ANY CEO HAD THOUGHT ABOUT STOPPING IT THEY WOULD'A RIPPED HIS LUNGS OUT AND SENT HIM DOWN THE MORON ROAD..

PhoenixL46 12:45:55 PM Feb 15 2009

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INVENTOR707 IS SPOT ON....BY REDUCING EVERYONE TO A NUMBER YOU CAN PLUG IT INTO COMPUTER AND LET IT CHURN OUT 100'S OF THOUSANDS OF DECISIONS WITH OUT ANY HUMAN ACTUALLY LOOKING AT AN INDIVIDUAL AND HIS CIRCUMSTANSES...THE FACT THAT NUMBER IS INACCURATE, INCOMPLETE AND FLAT IN ERROR NEVER OCCURED TO THE "MASTERS OF THE UNIVERSE" RUNNIN' THE GAME..

BCCPAN 12:43:10 PM Feb 15 2009

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All these thing were made up to increase the bottom line of the banks throwing logic and risk management to the wind. This is why I am so pissed at the consumer paying for scams the banks knew would not last forever and the outcome would be world wide financial collapst. Fraud and treason to start with. This is wher I came in and wher I go out gotta plant some more tomatoes and peppers just incase Obama can't get this right and we have to. Have a good week .

INVENTOR707 12:35:47 PM Feb 15 2009

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Now let see could it be possible that maybe in order to qualify the borrower that potentially paid part of the down payment with credit cards, had $40,000 in credit card debt and $300,000 in lines of credit we need a no income verification loan? The conservative borrower has $5,000 in credit card debt and $7,000 total line of credit but they have low credit score. The conservative has $20,000 in the bank. The the other has $40,000 in debt and $300,000 line of credit but they have that great credit score. Credit score were used as form of pricing mortgage pool risk.

PhoenixL46 12:23:04 PM Feb 15 2009

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GRANTING HOME LOANS WAS A DELIBERATE AND SERIOUS BUSINESS AT ONE TIME BUT CEO'S DON'T MAKE MILLION DOLLAR BONUS'S BY BEING SERIOUS AND DELIBERATE. SO, WHEN FAIR-ISSAC COMPANY CAME OUT WITH THE 3 DIGIT FICO SCORE ABOUT 20 YEARS AGO IT WAS OFF TO THE RODEO...SCREW ACTUALLY LOOKIN' AT CREDIT, WE GOT OURSELVES A 'NUMBER'....THE FACT IT'S DEEPLY FLAWED IS JUST AN SLIGHT OVERSIGHT...

BCCPAN 12:21:34 PM Feb 15 2009

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PhoenixL46== Yea it is called squatters rights. The banks are just a dispersing company after the loans are sold they can't show ownership and the investors have to do the foreclosing. When one loan can be split into a thousand peices it takes all 1000 investors to file. Im sure they will get lawyers to represent them all because forclosures cost the very little mods and people keeping the home cost them millions.

PhoenixL46 12:15:07 PM Feb 15 2009

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FUNNY YOU SHOULD MENTION THAT BCCPAN, IT SEEMS THE BANKS AND WALL STREET WHO SOLD THE MORTGAGES WEREN'T REAL CAREFUL ABOUT LEGALLY PASSING OWNERSHIP OF THE MORTGAGE NOTES AND DEEDS...AND AS A LADY ATTORNY IN ALABAMA HAS BEEN SUCESSFULLY POINTING OUT 'YOU DON'T OWN THE MORTGAGE YOU CAN'T FORECLOSE ON THE MORTGAGE "..SHE'S STOPPED FORECLOSURES BUTTCOLD IN ABOUT EVER CASE...

INVENTOR707 12:07:28 PM Feb 15 2009

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Phonex46- Your on the Money!

BCCPAN 12:05:33 PM Feb 15 2009

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PhoenixL46== Thats it in a nut shell the banks sold something that wasn't their and the feds sat back and let them make billlions. But then came the defaults and the house came tumbling down. Investors own the loans and modification will be very hard. Again Im lucky my mortgage company keeps their loans and dose not play in the subprime arena. So if I do get layed off or my income is reduced getting helpful changes will not be as hard. (I HOPE)

PhoenixL46 12:03:47 PM Feb 15 2009

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INVENTOR707 PUTS HIS FINGER ON A PROBLEM THAT'S BEEN HIDDEN TOO LONG...THAT 3 NUMBER CREDIT SCORE THAT CAN RUIN YOUR LIFE IS PRETTY MUCH CRAP...EXCEPT FOR FAIR - ISIACC COMPANY WHO INVENTED AND SELLS IT...

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