Loan Think

When Foreclosure-gate Hurts

The Foreclosure-gate scandal appears to be having a real effect on loan closings — at least for some mortgage bankers. John Walsh, CEO of Total Mortgage Services in Milford, Conn., told us the other day that Connecticut's 60-day moratorium on foreclosure sales has caused his firm to scuttle closings scheduled for last week and this week. "The unintended consequence of this is that some people won't get to buy houses," he said. "This is not a good situation," he told us. Walsh said Connecticut is the only state to issue a moratorium on foreclosure-related home sales…

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