NEW YORK ( TheStreet) -- As states attorney generals in 49 states launch a nearly nationwide probe into the latest foreclosure mess, JPMorgan Chase (JPM - Get Report) is addressing its foreclosure issues by taking a down in the trenches approach.
JPMorgan is currently reviewing roughly 115,000 loan files in the foreclosure process and will re-file affidavits where appropriatem -- or even delay foreclosure sales in certain states -- while new processes are being put in place. The banks said it wants to "ensure we fulfill all procedural requirements on a go-forward basis," according to JP Morgan's third-quarter earnings call presentation slides.
Members of JPMorgan's management said on the call earlier in the day that it has identified issues related to affidavits signed under the foreclosure process.
Specifically that some affidavits were not properly notarized, while other signers of the forms did not personally review the underlying loan files, but employees instead relied upon the work of others.Chairman and CEO Jamie Dimon said while it would take several weeks to go through the files, as well as various conversations with state attorney generals and regulators, hopefully the banks will be able to resume foreclosures in early 2011.
|JPMorgan Chase Chairman and CEO Jamie Dimon|
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