Bank of America – which at mid-year had 420,000 loans in some stage of foreclosure – said it temporarily will halt selling foreclosed homes in all 50 states.
The declaration came Friday morning as the nation's foreclosure crisis reached a fevered pitch with additional politicians and consumer groups calling for a national foreclosure moratorium.
The bank said it would stop sales of foreclosed homes in all 50 states as it reviews potential flaws in foreclosure documents. Previously, B of A said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.
"We will stop foreclosure sales until our assessment has been satisfactorily completed," company spokesman Dan Frahm said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."
According to figures compiled by National Mortgage News and the Quarterly Data Report, B of A is the nation's largest servicer of home mortgages with $2.197 trillion in receivables, and a 22.2% market share.
The mega bank, which bought Countrywide Financial Corp. in August 2008, has an overall residential delinquency rate of 14.10%, according to NMN/QDR.
A majority of its problem loans can be traced to Countrywide, and the subprime division of Merrill Lynch & Co.
