Lenders Assail New Jersey’s Threats To Halt Foreclosures
NEWARK, N.J. (AP) – Six of the country’s largest mortgage lenders face a court hearing in New Jersey next month that will determine whether the state suspends their foreclosure operations.
A court order issued in December requires GMAC Mortgage, OneWest Bank, BAC Home Loan Servicing, Chase Home Finance, Wells Fargo Financial New Jersey and CitiResidential Living to demonstrate why they should be allowed to continue to operate in the state.
The order arose from a report to the state Supreme Court describing widespread irregularities in foreclosure filings in other states.
The companies have responded that they reviewed their practices and made significant changes months before New Jersey’s court order. They also claim the court is overstepping its bounds by trying to take on powers that rightly belong to legislators and regulators.
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