Merkley, Wyden Call on JP Morgan Chase and Ally Financial to Halt Foreclosures in All States

Merkley, Wyden Call on JP Morgan Chase and Ally Financial to Halt Foreclosures in All States


Washington, D.C. –
Following news that Bank of America will be halting foreclosures in all 50 states until further investigation into foreclosure practices takes place, Oregon Senators Jeff Merkley and Ron Wyden sent a letter to JP Morgan Chase and Ally Financial calling for a similar moratorium on foreclosure proceedings in all 50 states. Since Oregon is a non-judicial state and therefore not affected by the suspension of foreclosure proceedings earlier in the week, the Senators want to ensure that Oregon homeowners are not being subjected to similar faulty foreclosure proceedings.

“No family should lose their home as the result of a questionable foreclosure, no matter what state they live in,” said Merkley. “I hope that JPMorgan Chase and Ally Financial will agree, and take immediate steps to freeze foreclosures in Oregon and all states until they have fixed the problems in the foreclosure process.”

“Oregonians and residents of other non-judicial states deserve to know that their foreclosure cases were handled as fairly and carefully as residents in any other state,” Wyden said. “We are not seeking any special treatment, simply that Oregonians and others in states like it are offered the same protections as anyone else. I urge JPMorgan Chase and Ally Financial to do the right thing and extend the moratorium to Oregonians.”

Last week, Senator Merkley called on U.S. Treasury Secretary Timothy Geithner and U.S. Secretary of Housing and Urban Development Shaun Donovan to launch an independent investigation into foreclosure practices after it was discovered that thousands of foreclosure documents had not been properly reviewed.

Read the full letter below.

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October 8, 2010

Mr. James Dimon

JPMorgan Chase

Chairman and Chief Executive Officer

270 Park Avenue

New York, NY 10017-2070

Mr. Michael A. Carpenter

Ally Financial

Chief Executive Officer

200 Renaissance Center

Detroit, MI 48265

Dear Mr. Dimon and Mr. Carpenter:

We write you today to ask that JPMorgan Chase extend its current suspension of foreclosure activities so that it applies equally to American homeowners in all states across the country.

A record one million families or more are expected to lose their homes to foreclosure this year.  These foreclosures are devastating to the families who must start their lives anew, and to all their neighbors whose equity and mobility have been negatively impacted. 

In addition to the impact on families, our national economic recovery is dependent upon the stabilization of our real estate markets and the resulting increased demand for goods and services that will accompany restored consumer confidence.

We appreciate that your firm suspended foreclosure proceedings in the states with a judicial foreclosure process once you became fully aware of the shortcomings that have occurred as lenders, loan servicers, and their associated organizations attempted to handle the wave of foreclosures sweeping through so many regions of our country.  We strongly request, however, that borrowers in all states receive the same fair treatment from your organization.

It is essential that all Americans can be assured that the fate of any family faced with the loss of their home has had their circumstances carefully and accurately reviewed before legal action is taken.  Citizens who happen to live in non-judicial foreclosure states should be offered the same protections that are available to homeowners in other states.  We hope that JPMorgan Chase will agree, and take immediate steps to ensure all American families that their cases will be thoroughly reviewed before any further steps are taken toward foreclosure.

We look forward to hearing your decision on this important matter that will affect Oregonians and families in twenty-six other states.

Sincerely,

                        Jeffrey A. Merkley                                          Ron Wyden

                        United States Senator                                     United States Senator