Community groups seek Countrywide foreclosure halt
NEW YORK (Reuters) - California community groups called on Wednesday for a moratorium on mortgage foreclosures by Countrywide Financial Corp CFC.N, the largest U.S. mortgage lender.
In a letter addressed to Bank of America Corp (BAC.N), which has agreed to acquire Countrywide, the groups said California is in the midst of a mortgage foreclosure crisis, with half a million homeowners on the verge of losing their homes.
"Countrywide's bad lending practices are ruining the dreams of thousands of Californians -- Countrywide borrowers and employees alike -- and Bank of America has the opportunity to rebuild them," said the letter, signed by 91 community groups and addressed to Bank of America CEO Kenneth Lewis .
Countrywide said last week that foreclosures and late payments rose in January to record highs, reflecting the nation's deepening housing and credit crunch.
It said the foreclosure rate on the 9.02 million mortgages on which it collects and processes payments rose to 1.48 percent, up from 0.77 percent a year earlier and 1.44 percent in December.
(Reporting by Jonathan Keehner; editing by John Wallace)
