More U.S. servicers are likely to take JPMorgan Chase's and GMAC's lead to halt foreclosure proceeding in the face of increased scrutiny over their foreclosure process.

"The word 'Robo-Signer' is being used as describing one who merely signed whatever papers came across their desk and given what we know about the housing mess, I'm sure every single servicer had the same problem," said Jesse Litvak, an MBS trader at Jeffries & Co. "Given the legal risk that these servicers could be putting themselves at by not trying to right the wrong for these borrowers – while GMAC and JP are the only two that have come out so far – I would expect all the big boys to weigh in with similar actions. "

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