While some industry players argue that foreclosure suspensions instituted by lenders could ultimately flood the market with REOs and hamper the now-steady gains in home prices, Wisconsin’s largest bank continues to employ the strategy to keep its customers in their

homes. Marshall & Ilsley (M&I) said Monday that it is extending its voluntary foreclosure moratorium an additional 90 days, through December 31, 2009. The initial moratorium was announced on December 18, 2008, as part of M&I’s Homeowner Assistance Program. The foreclosure freeze applies to all owner-occupied residential loans for customers who agree to work in “good faith” to reach a successful repayment agreement. It covers loans in all M&I markets, which in addition to Wisconsin, include Arizona, Indianapolis, the west coast and central part of Florida, Kansas City, Minnesota, Las Vegas, and St. Louis. M&I’s Homeowner Assistance Program also features refinancing options, including term extensions and lower rates, to reduce distressed homeowners’ monthly payments.