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PNC Financial Halts Foreclosures to Review Servicing Procedures

""PNC Financial Services Group"":http://www.pnc.com is the fourth large lender to suspend foreclosures within the past three weeks because of potential deficiencies in the legal paperwork.

The Pittsburgh-based bank has reportedly notified its industry partners that it is holding up sales of foreclosed homes in judicial states while the company reviews its internal servicing procedures.

[IMAGE] [COLUMN_BREAK]

The ""_New York Times_"":http://www.nytimes.com/2010/10/08/business/08pnc.html?_r=1&=dbk reported Friday that title insurers doing business with PNC had received a memo from the bank alerting them that closings of foreclosure sales are being postponed effective immediately.

Unlike the other three moratoriums announced before it, PNC has put an end date on its foreclosure suspension. The bank says it will take it just 30 days for it to evaluate and determine if its servicing staff followed procedure in approving and preparing foreclosure documentation.

On September 20th, ""GMAC Mortgage was the first"":http://dsnews.comarticles/gmac-calls-news-of-its-foreclosure-moratorium-untrue-speculation-2010-09-20 to halt foreclosures in 23 judicial states due to what it called an ""internal procedural error."" ""JPMorgan Chase followed suit"":http://dsnews.comarticles/jpmorgan-halts-foreclosures-robo-signers-appear-commonplace-2010-09-30 on September 30th, as did ""Bank of America on"":http://dsnews.comarticles/bank-of-america-suspends-foreclosures-in-23-states-2010-10-01 October 1st. BofA has since ""expanded its moratorium"":http://dsnews.comarticles/bank-of-america-halts-foreclosures-nationwide-2010-10-08 to include all 50 states, rather than the 23 initially announced.

At the time of publication, PNC had not responded to our inquiries regarding its foreclosure suspension and the affected states.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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