On the Call: Bank of America CEO Brian Moynihan

AP News
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Posted: Oct 19, 2010 11:38 AM
On the Call: Bank of America CEO Brian Moynihan

Bank of America Corp. the largest U.S. bank, had halted foreclosures in all 50 states after evidence emerged that employees didn't read the documents they had filed during the process.

The bank said on Monday that it plans to resume foreclosures next week in 23 states that require a judge's approval to restart the foreclosure process. The company says it will continuing delaying about 30,000 foreclosures in 27 states that don't require a judge's approval.

Brian Moynihan, BofA's CEO, discussed the foreclosure issue in introductory remarks and while answering questions from analysts on a conference call Tuesday to discuss the bank's earnings with investors:

"It's going to take us three to five weeks to get through and actually get all of this taken care of. The teams reviewing the data have not found information which was inaccurate which would affect the plain facts of the foreclosure.

"Of the foreclosure sales that took place in the second quarter, 33 percent of those properties were vacant, 80 percent had not made a payment for a year. The delinquency averaged 1.5 years for those customers and reflected the very tough times that these consumers are going through, 50 percent were unemployed or lost their income."