Feds Launch Foreclosure Probe, and Chicago Halts Evictions
Gibbs said an interagency task force on financial fraud is probing the foreclosure process, while the Federal Housing Administration, which guarantees mortgages, has launched its own investigation as well. Gibbs added that the White House will support efforts from all 50 states to investigate the foreclosure process.
JPMorgan Chase (JPM) said on Oct. 13 that it was broadening its review of its foreclosure process to about 115,000 cases in 41 states, while Ally Bank's GMAC Mortgage unit also said last week that it would review its foreclosure procedures in all 50 states.
In Illinois' Cook County, which includes Chicago, sheriffs' deputies will hold off on carrying out about 1,500 evictions scheduled for the next few days. The AP cited Cook County Sheriff Tom Dart saying that deputies will serve notices to residents of homes ordered to be foreclosed upon by BofA, JPMorgan Chase and GMAC, but they won't enforce eviction orders.