Tuesday, 12 October 2010
As many as 40 U.S. state attorneys general are expected to announce an investigation into the mortgage financing industry on Wednesday.
The investigation may pressure financial institutions to rewrite a large amount of troubled loans, according to the Wall Street Journal. The inquiry comes among recent allegations that mortgage servicers submitted fraudulent documents in thousands of foreclosure proceedings nationwide.
The mortgage companies are scrambling to defend, and where needed, improve their foreclosure procedures due to anger among homeowners and regulators.
The issue arose last month when GMAC Mortgage revealed officials had signed thousands of affidavits supporting such proceedings without knowing their contents.
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