BofA, Ally Financial, JPMorgan Chase respond to AGs
Bank of America (BAC), Ally Financial (GJM) and JPMorgan Chase (JPM) issued statements regarding the recent 50 state attorneys general offices launching an co-operative investigation into their servicing operations. Each bank said it would cooperate with the investigations as it reviews foreclosure processes for any improperly signed affidavits or other defects. Rick Simon, a spokesman for Bank of America Home Loans, said it is meeting with the AGs to discuss their concerns. "We are confident that they are taking a balanced approach to their review, to ensure that processes leading to foreclosure are proper, while understanding that unwarranted delays of foreclosures may undermine recovery of the housing market and overall economy," Simon said. BofA suspended foreclosure sales in all 50 states last Friday as part of the review. James Olecki, a spokesman for Ally Financial, the parent company of GMAC Mortgage, said the bank is responding accordingly to official inquiries from the individual states. It extended its review to all 50 states but not its suspension from the original 23 states. "GMAC Mortgage is committed to restoring confidence in the foreclosure process and has been working expeditiously on the review and remediation activities for the affected cases," Olecki said. Thomas Kelly, a spokesman for JPMorgan Chase said they look forward to working the AG offices. It too extended its review to 41 states and 115,000 mortgages. Together, these three banks service 23 million mortgages with an unpaid principal balance of $3.68 trillion. As of March, BofA's servicing portfolio totaled 13.7 million mortgages for an unpaid principal balance of roughly of $2.1 trillion. JPMorgan Chase's primary servicing portfolio totaled roughly 6.8 million loans for an unpaid principal balance of roughly $1.2 trillion as of June 30. And Ally Financial's primary servicing portfolio totaled 2.6 million loans for an unpaid principal balance of roughly $380 billion as of July 31. Write to Jon Prior.