Federal investigators have opened a criminal probe of the improper approval of thousands of foreclosures by some of the nation’s largest banks. The Financial Fraud Enforcement Task Force says it’s conducting a multi-agency investigation of allegations lenders filed fraudulent documents to repossess homes. The firms are being investigated for allegedly misleading federal housing agencies and potential violations of federal laws on mail or wire fraud. White House Press Secretary Robert Gibbs said banks could face legal action.

Robert Gibbs: “They have certain requirements under the law that have to be met, and if they’re not meeting those requirements, they certainly can face fines from us and they can face legal action from homeowners.”