Jeff Horowitz, a journalist at American Banker, came to us last night with a rumor that a guidance letter from the Office of the Comptroller of the Currency (OCC) had caused several large servicers to stop foreclosure sales. Please read Jeff’s excellent article, where he noted that within two weeks of the release of the letter, Wells Fargo (Wells), Citigroup (CITI) and JP Morgan had all but stopped foreclosure sales.
Our real-time foreclosure sales data confirmed the rumor. The data also showed that foreclosure sales at Bank of America were little affected. Finally, it appears that on May 14, JP Morgan renewed its foreclosure sales activity. We fully expect Wells and Citi to follow in the footsteps of JP Morgan in the next couple of weeks.
Director of Economic Research