The recent news informed that one of the nation’s leading banks, J.P. Morgan Chase has announced to freeze foreclosures in approximately half of the country regarding the fault paperwork. According to Wall Street analysts, the action taken by J.P. Morgan Chase will pressure the rest of the industry to follow suit.
If the action is finally executed, it will affect 56,000 borrowers in 23 states, but the bigger impact may happen if other banks take the same strategy because the foreclosures process in many parts of the nation may stop abruptly. According to officials at Fitch Ratings, the flawed paperwork at J.P. Morgan Chase are industry-wide so this will be necessary to lower the grades given to mortgage servicing divisions of the country’s largest lenders.
In details, the problems found in J.P. Morgan Chase’s documents also unearthed the other problems at another large mortgage lender, Ally Financial. However, the decision taken by J.P. Morgan Chase is hoped to give significant effect on the affiliated industry since its peers hold in high regard over it.