Connecticut Attorney General Richard Blumenthal asked the state Judicial Department to halt foreclosures for 60 days while servicers review defective affidavits.
He made the request after JPMorgan Chase (JPM) suspended 56,000 foreclosure cases
while it reviewed documents signed by employees without knowledge of the case or a notary present.
Blumenthal said he is investigating both Ally Financial
, formerly GMAC, and JPMorgan Chase and other banks that may have engaged in similar practices.
"This freeze should stop a foreclosure steamroller based on defective documents and enable effective remedies," Blumenthal said in a statement. "The actions of GMAC/Ally and JP Morgan are inexcusable, a possible fraud on the court undermining the integrity of the legal process and consumers’ ability to fight foreclosures."
The Office of the Comptroller of the Currency
is also putting top servicers on review
Both Ally and JPMorgan Chase have stated that internal reviews have shown no factual errors in the process, and that they are submitting new affidavits to the courts soon. Regardless, Blumenthal is calling for a shutdown of the entire foreclosure process.
"The Judicial Department should take additional measures -- including requiring signers to state the basis for verifying information in affidavits -- to restore the integrity of foreclosure documents," Blumenthal said.
Write to Jon Prior