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Attorneys General Launch Probe as Foreclosures Break Records

HeadlineOct 14, 2010

Attorneys general from all fifty states have launched a joint probe into alleged fraud by the nation’s biggest lenders in forcing thousands of people out of their homes. The investigation will center on allegations mortgage companies made misleading or fraudulent statements and signed off on documents without proper review to approve scores of foreclosures. Iowa Attorney General Tom Miller will oversee the joint effort. Also Wednesday, regulators at the Federal Housing Finance Agency ruled out a national moratorium on foreclosures, instead backing a voluntary review by lenders of their own practices. Criticizing the move, Democratic Senator Al Franken of Minnesota said the plan “seems to only require that servicers conduct an internal review — the very same servicers that brought us this mess.” The banking giant JPMorgan Chase, meanwhile, said it has expanded a review of its mortgages in twenty-three states to forty-one states. The developments come as new figures show foreclosures have hit record highs in recent months. According to RealtyTrac, banks seized over 100,000 homes in September for the first time. Over 288,000 homes were seized in the July to September quarter, the highest-ever total for a three-month period on record.

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