A U.S.-wide foreclosure moratorium would be "catastrophic" and could unjustly impose losses on investors in the housing market, a major securities lobbying group said Monday.
The Securities Industry and Financial Markets Association said foreclosure processing mistakes should be fixed but warned against dramatic nationwide action.
"It is imperative, however, that care be taken in addressing these issues to ensure that no unnecessary damage is done to an already weak housing market and, in turn, that there is no further negative impact on the economy," SIFMA Chief Executive Tim Ryan said in a statement.
SIMFA warns against damage to weak housing market.White House adviser unsure over US-wide foreclosure halt.BofA has halted evictions in all 50 states.
On Sunday, White House adviser David Axelrod said he was "not sure" about a national halt to foreclosures.
Disclosures that some big mortgage processors filed affidavits without proper scrutiny in thousands of foreclosure cases has drawn anger from Congress and advocacy groups, with some prominent lawmakers calling for foreclosures to be halted in all 50 states.
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