The Second Foreclosure Crisis

No Way, B of A

Bank of America, Chase and GMAC Mortgage (aka Ally, aka Ditech) have put tens of thousands of foreclosures on hold and lawmakers are calling for a nationwide moratorium after bank employees admitted they failed to conduct legally required required reviews.

The U.S. Justice Department is looking into charges of irregularities and possible wide spread fraud on the part of banks in foreclosure procedures. State Attorneys General have begun their own investigations. The 3 major lenders have suspended foreclosures in 23 states and a fourth lender has suspended sales of foreclosed homes nationwide. And thousands of legal proceedings across the country are showing that in the case of many mortgages, it’s hard to find out who owns the loan.

Fine Print Bites Back Audio Embed: Morning Edition 10/8/10, Reporter: Chris Arnold

Binyamin Appelbaum, financial reporter for The New York Times, provides additional analysis of the latest furor in foreclosures.

Stop The Madness & The Fraud Audio Embed: BBC, PRI & WBUR's Here & Now 10/8/10, Host: Deborah Becker.