Mortgage Servicers Delay Foreclosure, Await Planby Tim Manni
Both JPMorgan and Citi have announced their plans to temporarily delay foreclosures, as they await a housing-rescue plan from the Federal government. Despite Treasury Secretary Geithner’s lack of specifics regarding a housing-rescue plan in his address on Tuesday, the servicers are confident that cash will be made available for new programs within a couple of weeks:
Citi said the moratorium is effective Feb. 12 and will remain in place until March 12, or until the Obama Administration finalizes the details of its loan modification program, whichever comes first, the bank said.
In a letter to Rep. Barney Frank, D-Mass., [JPMorgan CEO Jamie] Dimon said JPMorgan has initiated a foreclosure moratorium through March 6.
“We believe three weeks is adequate time for the Treasury to announce – and for us to implement – a new plan,” Dimon said.
According to the latest reports from the Associated Press’ Alan Zibel, President Obama will outline at least part of the housing-rescue plan next week:
The White House said President Barack Obama on Wednesday will outline his much-anticipated plan to spend at least $50 billion to prevent foreclosures in a speech in Arizona, one of the states hardest hit by the foreclosure crisis.