President Barack Obama's senior adviser said Sunday that he wants Congress to address improper foreclosures but indicated that the White House doesn't support a national moratorium.
State attorneys general have stepped up pressure on banks after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, a process now known as "robo-signing."
Ohio's attorney general has filed a lawsuit against Ally Financial and its subsidiary GMAC Mortgage for allegedly submitting fraudulent documents in hundreds of foreclosure cases across the state.
Senate Majority Leader Harry Reid, D-Nevada, called on major mortgage servicers to consider halting foreclosures in all 50 states in a statement released Friday.
"It is only fair to Nevada homeowners to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly," Reid said.
Appearing on CBS' Face the Nation Sudnay, David Axelrod was cool to the idea of a moratorium.
"I'm not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward and where the documentation and paperwork is proper," said Axelrod.
"We are working closely with these institutions to make sure that they expedite the process of going back and reconstructing these and throwing out those that don't work," he said.
The White House announced Friday that the president would block a bill that would have made it more difficult for home owners to challenge foreclosures.
