Bank of America announced Friday their decision to freeze all foreclosure proceedings through out all 50 states in response to Senate Majority Leader Harry Reid’s call for a suspension on foreclosures. In the week prior to Bank of America’s statement, the financial institution had said they would most likely only suspend foreclosures in the 23 states where the process had to be judge approved.
Senator Harry Reid complimented Bank of America in thanking the institution “for doing the right thing by suspending actions on foreclosures while this investigation runs its course.”
Bank of America has fallen under public scrutiny after Renee Hertzler, a bank official, confirmed in a legal proceeding that she had signed hundreds and thousands of foreclosure documents a month often with out reading them. The Associated Press reported Hertzler and testifying to signing up to 8,000 foreclosure documents a month.
Senator Christopher Dodd, chairman of the Senate Banking Committee, stated he would hold a hearing on the suspension of foreclosures some time in the next month. Dodd went on to say, "American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud."