It is being widely reported in the press that J.P. Morgan Chase (J.P. Morgan) announced today that it will freeze some of its foreclosures, mirroring a similar announcement by Ally Financial Inc.’s GMAC mortgage unit (Ally) last week that Ally is suspending evictions and post-foreclosure proceedings. Both firms are investigating whether foreclosure files were improperly assembled and whether their employees failed to review the documents even as they signed off on them. J.P. Morgan is reportedly freezing foreclosures in 23 states in which borrowers have made allegations of forged documents and other similar problems to try to overturn court-ordered evictions. The announcement could affect as many as 56,000 borrowers. Weaknesses in the foreclosure processes, controls and procedures are probably not unique to J.P. Morgan and Ally. Fitch Ratings issued a press release noting that the problem is industry-wide and that it is considering whether to lower its ratings of the mortgage servicing divisions of some of the nation’s largest lenders.