The Madeleine Brand Show for October 8, 2010

Banks Agree to a Foreclosure Freeze

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Today, the nation's largest bank - Bank of America - says it will temporarily halt the sales of foreclosed properties in all 50 states as it reviews how it handled foreclosures.

There are calls across the political spectrum to temporarily halt foreclosures after accusations that banks did shoddy work prepping foreclosure documents.

Today, the nation's largest bank - Bank of America - says it will temporarily halt the sales of foreclosed properties in all 50 states as it reviews how it handled foreclosures.

PNC Financial Services Group will do the same in 23 states, joining JP Morgan Chase and GMAC Mortgage.

Fannie Mae says it won't issue loans for homes that may have been foreclosed on in bad faith. This country-wide halt on the sales of foreclosed homes means people who want to buy those homes will have to wait.

Chris Thornburg an economist specializing in real estate for Beacon Economics, joins Madeleine to talk about the foreclosure freeze.


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