Hot on the heels of foreclosure and eviction freezes by GMAC/Ally, JPMorgan Chase and Bank of America, the Attorney General for the state of Texas has become the latest AG to request that loan servicing companies put a temporary halt to foreclosures.

Yesterday, Texas Attorney General Greg Abbott sent letters to 27 loan servicing companies demanding an immediate freeze on foreclosures and evictions from foreclosures. The moratorium comes after the revelation of illicit activities, including signing thousands of foreclosure documents each month without reading or verifying them; signing affidavits falsely claiming personal knowledge of facts or falsely claiming the signing party reviewed attached documents; and notarizing documents prior to their signing or when the signer was not present.

Abbott has given the companies until Oct. 15 to identify any employees who may have participated in unlawful practices.

The AG in Maryland has called for a 60-day freeze on foreclosures, while Delaware Attorney General Beau Biden has asked mortgage banks to suspend all pending foreclosures. Massachusetts Attorney General Martha Coakley said her office is investigating an “apparent failure of major creditors to follow state foreclosure law.”

Texas AG calls for statewide foreclosure freeze [BusinessWeek.com]

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