Attorneys general in 50 states join foreclosure probe

interns Contributor
Font Size:

Top legal officers of all 50 states opened a joint investigation into home foreclosures, saying they will probe practices at banks and mortgage companies.

The states, including Texas, Iowa and New Mexico will conduct a coordinated inquiry into whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures, Minnesota Attorney General Lori Swanson said today in an e-mailed statement.

“Our multistate group has begun inquiring whether or not individual mortgage servicers have improperly submitted affidavits or other documents in support of foreclosures,” the attorneys said in a statement. “The facts uncovered in our review will dictate the scope of our inquiry.”

The National Association of Attorneys General announced earlier today that 49 states would be participating with Alabama the holdout. Alabama will now join the probe, even though “no violations of Alabama law have been alleged at this time,” Attorney General Troy King said in an e-mailed statement.

Full story: Attorneys General in 50 States Join Foreclosure Probe – BusinessWeek