Banks Temporarily Stop Foreclosures
Three of the country's largest banks make move to give government time to act.
Feb. 13, 2009— -- Bank of America, JP Morgan Chase and Citigroup have announced a temporary moratorium on new home foreclosure activity in anticipation of the Obama administration's plan to subsidize mortgage payments.
Bank of America's moratorium lasts through March 6, but in a statement the bank said, "if the program's development is not complete in three weeks, we will consider a possible extension."
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JP Morgan Chase's moratorium also lasts through March 6, but the banks adds that it believes "three weeks is adequate time for the Treasury to announce -- and for us to implement -- a new plan."
Citigroup says its moratorium will be in effect until the "details of a loan modification program have been finalized, or March 12, 2009, whichever is earlier."
The three banks have so far received a total of $115 billion in government assistance.
During Congressional testimony earlier this week, banks were asked by members of Congress, including House Financial Services Committee Chairman Barney Frank, to suspend foreclosure activity for a short time.
