Bank of America chief executive Brian Moynihan said the servicer's new foreclosure moratorium should only last a few weeks while the firm rechecks the paperwork it submitted in thousands of foreclosure cases.
"We have not found any problems in the foreclosure process," the B of A CEO said at the National Press Club Friday afternoon. (His comments came about two hours after the bank announced its moratorium.)
He noted that the nation's largest servicer wanted to "clear the air" by expanding the moratorium to all 50 states from the 23 it had already announced.
"So, we are going to go back and check our work one more time," he said.
The CEO noted that B of A has not found any errors yet and stoppage will not have much of an impact on the company. "It is matter of a few weeks," he said.
The real impact, he indicated, will be on the build up of inventory of foreclosed properties that cannot be sold right away.
B o A completed 700,000 loan modifications over the past few years and now has 25,000 employees working with delinquent borrowers.
"We have done everything we can to try and help these homeowners through this process," he said.
