Yesterday, U.S. President Barack Obama vetoed a controversial foreclosure bill that would have benefited big banks and corporations.
Obama’s refusal to sign the bill into law resonated with critics because they say the bill would have made it easier for banks to evict homeowners who fell behind on their loans.
As a result of Obama’s audacious decision, Bank of America today halted foreclosures and evictions in all 50 states.
“We will stop foreclosure sales until our assessment has been satisfactorily completed,” company spokesman Dan Frahm said in a statement. “Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.” [link]
Critics of the foreclosure bill say there is evidence that mortgage company employees and/or their lawyers used illegal tactics to sign documents in foreclosure cases, resulting in increased evictions.
State and federal officials have put pressure on the mortgage industry over worries about potential legal violations. Also Friday, PNC Financial Services Group Inc. announced it would stop foreclosures and evictions in 23 states for a month.
PNC and Bank of America join Ally Financial’s GMAC Mortgage unit and JPMorgan Chase & Co. in halting foreclosures and evictions.
It might seem like such a small thing to be merciful and kind to others. But Obama, and big banks in particular, seem to have trouble finding compassion in their hearts for families who face foreclosures.
I guess all it took was for voters to threaten Hope and Change in November?
Hopefully the benevolence of bankers — who get so much and give so little — will carry over to next month.
