Report: States To Probe Mortgage Foreclosures - Spokane, North Idaho News & Weather KHQ.com

Report: States To Probe Mortgage Foreclosures

MSNBC.COM - As many as 40 state attorneys general in the United States are expected to announce an investigation into the mortgage servicing industry on Wednesday, the Wall Street Journal said.

The investigation may help pressure financial institutions to rewrite large numbers of troubled loans, according to the report.

It comes amid recent allegations that mortgage servicers submitted fraudulent documents in thousands of foreclosure proceedings nationwide.

Companies are scrambling to defend, and where needed, improve their foreclosure procedures in the face of anger among homeowners and regulators.

The issue came to the forefront last month when GMAC Mortgage revealed that officials had signed thousands of affidavits supporting such proceedings without knowing their contents.

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