Lobbying Group Warns Against Foreclosure Moratorium

10.11.10 | FL News Team

(Washington, DC)  --  A securities lobbying group is warning of an economic catastrophe if there's a nationwide moratorium on foreclosures.  The call for a moratorium comes after major mortgage processors allegedly filed affidavits based on improperly completed documents.  Bank of America recently announced it would temporarily stop foreclosures in all 50 states to investigate its paperwork.

The Securities Industry and Financial Markets Association said those processing mistakes should be fixed, but said taking drastic action could hurt an already weak housing market.