Country’s largest banks suspend foreclosures

Wells Fargo, J.P. Morgan Chase, Bank of America and Citigroup Inc. have agreed to halt home foreclosures while the federal government works out a plan to stabilize the nation’s banking industry.

“We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by J.P. Morgan Chase,” said J.P. Morgan Chase CEO Jamie Dimon in a Feb. 12 letter to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.

That moratorium would remain in effect through March 6.

Citigroup said it would put a moratorium on foreclosures of Citigroup-owned loans on principal residences, among others. Citi’s moratorium is scheduled to last until March 12, barring federal action before then.

San Francisco-based Wells Fargo, one of the nation’s largest mortgage lenders, joined the moratorium Friday along with BofA.

“The vast majority of the mortgage loans Wells Fargo services are owned by other investors. We are fully committed to helping our customers find ways to avoid all preventable foreclosures, and we are working with these investors and related contractual commitments to determine how we will support the moratorium request,” said Wells Fargo spokesman Chris Hammond. …