Consumer rights and civil rights groups have banded together to call for a moratorium on home seizures in the wake of a major controversy surrounding the foreclosure practices of three major banks.

Though three major banks — Chase, Bank of America and Ally — have suspended foreclosures in 23 states, mortgage-related seizures have proceeded as usual in the nation’s other 27 states. Groups as varied as The National Association for the Advancement of Colored People, The Center for Responsible Lending and the U.S. House Committee for Oversight and Government Reform have called for a nationwide voluntary halt to foreclosures while banks sort out their issues. Some of the consumer advocacy groups say the banks’ actions hurt minority communities in particular.

The banks in question halted foreclosures in certain states after courts in those states complained that the institutions signed off on the foreclosures too quickly. The banks used so-called “robo-signers,” or employees that signed thousands of foreclosure documents each month. The courts allege the employees may not have properly reviewed the documents before signing them.

Foreclosure Problems Affect Legislation

Another consequence of the foreclosure problems was U.S. President Barack Obama not signing legislation that would streamline the foreclosure process for banks. The new law would have made it easier for banks to process large numbers of mortgage foreclosures. Since the controversy was predicated on banks possibly not taking enough time looking over each foreclosure, the President thought it unwise to give banks any more capability to skim through mortgages at a detrimentally quick pace.

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  • Shel3r

    Re: The outragous letter from the mortgage bankers to our Goverment… This letter is just another attempt to scam the American Public and conned our politicians into creating another late nite passing of a bill that gives a blanket protection for all the fraud committed by the well to do connected fat cats. In the beginning: If the judges had only given the homeowners a fair chance to go to trial the truth about Foreclosure gate (the decades Greatest American Scam) would have been stopped in the very early days. The truth would have come out a long time ago. The Florida bar should be ashamed of themselves for not stepping in and stopping the potential violations by the duly appointed. Where is Eric holder? Still thinking about who he might have to charge or is it another protection deal in the making for the fat cats. They all need to do a better job of policing the predatory lenders and the foreclosure mills who hired the companies that forged all the documents. They should also condemn and fire all the judges who put inocent families on the street via the summary judgements. Dont talk about Robe signers, lets talk about the few Robo Judges. Some Judges all across the country were acting like collectors for the lenders and servicers. some Judges never gave the homeowner a fair chance to prove their case in court, many judges took it very personal and just said pay your dam bills and get the hell out of my court room. Some families may have lost their homes in 90 seconds or less. I am however very proud of the judges who stood up to the fraud and who always did the right thing. But way to many hate the poor who are struggling with debt and they hate them tying up their courtrooms. Just look at some of the sad but very recorded foreclosure cases in Florida and you will see for yourself how the Robe Judges are treating the attorneys and the homeowners. Summary judgments, disrespect for defense attorneys and clients and utter rudeness is common in some court rooms. Rocket dockets and retired judges are the rule of the day in Florida and that may prove to be against the law and violating Americans rights to a fair hearing. Some judges have treated lawyers defending homeowners like idiots and banned most the truth from the court room with their ungodly summary judgments. Talk about Robo Signers what about the Robo Judges who put hundreds possibly thousands of families on the street? Who will eventually pay for the judges mistakes when all the homes sold to new buyers are given back due to fraud? That’s right not the judges who took homes its the tax payers. Or will the law makers create another protection bill to cover the fat cats at the last moment. Talk to any defense attorney and you will see how some judges took many homes and put families on the street. Many attorneys say serious violations of ethics and rules of law may have been broken but most wont say it publicly because they fear they might take their licence’s. I always believed as a child that all judges were here to protect the people and the American family from fraud and abuse by the big guys but sadly I came to find out that I was very wrong. The real Hero’s are the Good judges protecting Homeowners and families, the hard working defense attorneys like April charney, Matt Weidner, Mike Wayslic and many others like Ice legal. Keep up the good work people you will be rewarded. Read more: Foreclosure mess continues to deepen in S. Fla. – South Florida Business Journal

    • rickyg

      Thank you for your informative article. The entire system needs to be changed. People do not know their rights, ie.Truth in Lending, etc., and judges do not enforce borrower rights when raised.