Officials in Ohio and Connecticut, along with Florida, Texas, North Carolina, Iowa and Illinois, said they are investigating mortgage foreclosure practices. Photographer: Jacob Kepler/Bloomberg
Oct. 6 (Bloomberg) -- Joseph Murin, former president of government-run mortgage bond insurer Ginnie Mae, talks about the outlook for the housing market. Murin speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)
JPMorgan Chase & Co., Bank of America Corp. and Ally Financial Inc., defending allegations of fraudulent home foreclosures from customers and Congress, may face the most financial peril from investigations by state attorneys general.
Authorities in at least seven states are probing whether lenders used false documents and signatures to justify hundreds of thousands of foreclosures, and the number of these inquiries will grow, according to state officials and legal experts.
“You’re going to see a tremendous amount of activity with all the AGs in the U.S.,” Ohio Attorney General Richard Cordray said in an interview. “We have a high degree of skepticism that the corners that were cut are truly legal.”
Cordray announced today that he filed a lawsuit against Ally in state court, claiming its GMAC unit committed fraud and violated state consumer law by filing false affidavits in foreclosure proceedings.
Thursday, October 7, 2010
JPMorgan, Bank of America Face `Hydra' of Foreclosure Probes - Bloomberg
via bloomberg.com
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