DEVELOPING: Officials In 49 States Launch Foreclosure Probe - Spokane, North Idaho News & Weather KHQ.com

DEVELOPING: Officials In 49 States Launch Foreclosure Probe

WASHINGTON (AP) - Officials in 49 states have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.

The officials, including attorneys general and bank regulators, will examine whether mortgage company employees made false statements or prepared documents improperly.

"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess," Iowa Attorney General Tom Miller, who is leading the probe.

Four large lenders already have halted questionable foreclosures after evidence emerged that bank employees processed thousands of foreclosure documents without reading them. Other banks have not done so, saying they did nothing wrong.

 

(Copyright 2010 by The Associated Press.  All Rights Reserved.)
   

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