BofA halts all U.S. foreclosure actions

CHARLOTTE, N.C., Oct. 8 (UPI) -- Bank of America said Friday it would halt all U.S. foreclosures to re-examine paperwork and Sen. Henry Reid called on other lenders to follow suit.

In a brief statement, BofA said, "Bank of America has extended our review of foreclosure documents to all 50 states. We will stop foreclosure sales until our assessment has been satisfactorily completed."

BofA added, "Ongoing assessment shows the basis for our past foreclosure decisions is accurate."

The bank is reviewing paperwork in the wake of a growing scandal over improperly notarized documents.

With the number of foreclosures rising, the process for filing paperwork has allegedly given rise to numerous shortcuts, including "robo-signing," by which papers are signed electronically or by people who have not had time to read the documents.

Last week the bank said in an e-mail message it would "amend all affidavits in foreclosure cases that have not yet gone to judgment," joining GMAC Mortgage and JPMorgan Chase in a review of documentation that has been challenged in court in recent months.

BofA did not say how many cases were under review.

Reid, D-Nev., issued a statement praising BofA's decision and urging other lenders to suspend foreclosure activities until documents could be re-examined.

"I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course," Reid, the Senate majority leader, said, adding, "I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well."

Separately, President Obama vetoed a bill that would have eased rules on notarization that could have speeded the foreclosure process.