VOL. 125 | NO. 205 | Thursday, October 21, 2010
Obama Official Says Banks Can Restart Foreclosures
ALAN ZIBEL | AP Real Estate Writer
WASHINGTON (AP) — President Barack Obama's top housing official says lenders are within their rights to resume foreclosures this month despite allegations that they erred in processing documents.
Two big lenders — Bank of America Corp. and Ally Financial Inc.'s GMAC Mortgage unit — are resuming foreclosures after halting them for two weeks. The companies say they're fixing problems in legal documents used to complete foreclosures.
Whether to restart foreclosures is a decision every lender is entitled to make independently, says Housing and Urban Development Secretary Shaun Donovan.
"We're committed to forcing institutions to change the way they conduct business," Donovan says. "We will force the changes to make sure that these types of problems don't happen again."
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