Maryland Governor requests 60-day foreclosure moratorium
Maryland Gov. Martin O'Malley and the state's Congressional delegation sent a letter to the Court of Appeals requesting a 60-day foreclosure moratorium in light of recent procedural problems. Ally Financial (GJM), JPMorgan Chase (JPM), Bank of America (BAC), PNC Financial (PNC), Goldman Sachs' (GS) Litton Loan Servicing suspended foreclosures in 23 states after employees signed foreclosure affidavits without reviewing the documentation or having a notary present. Maryland was not one of those 23 states, although BofA did expand its suspension to the entire country. The US Attorney General Eric Holder launched an investigation into the allegations as well. But many commentators have said an extended foreclosure moratorium would damage an already shaky housing market. O'Malley wrote Maryland is not considered a judicial foreclosure state, but lenders are still required to file affidavits with every Order to Docket, which attests to certain facts about the loan. Because of this procedure, he wrote many Maryland homeowners could be at risk to the robo-signers. "Thus, we urge you to pursue whatever means you believe most effective and appropriate to halt foreclosure proceedings in Maryland for at least 60 days," O'Malley wrote. Write to Jon Prior. The author holds no relevant investments.