The Wall Street Journal is reporting that both Bank of America and GMAC plan to resume foreclosures after finding no serious issues in their process.
Monday's moves are part of a growing counterattack by lenders scrambling
to stem a financial and political threat over allegations that certain
employees signed hundreds of documents a day without carefully reviewing
their contents when foreclosing on homes.
Restarting the nation's foreclosure machine puts the lenders on a
collision course with state attorneys general, who announced last week a
nationwide investigation of foreclosure practices. Some state officials
have been pushing for a wider halt to foreclosure sales, but Bank of
America's moves show determination by at least some lenders to get back
to business while the investigation proceeds.
A Bank of America spokesman said the bank has found "no cases" thus
far of foreclosures that should not have "gone through."
Lawmakers still have some serious skepticism about the processes used by these banks. As long as there is doubt about the reliability of mortgage documents, many states attorneys will continue to fight this issue. The question is, does it matter?