States to Probe Mortgage Mess
Attorneys General Hope Lenders Will Re-Write Loans With Troubled Documents
By ROBBIE WHELAN And RUTH SIMON
A coalition of as many as 40 state attorneys general is expected Wednesday to announce an investigation into the mortgage-servicing industry, an effort some of them hope will pressure financial institutions to rewrite large numbers of troubled loans.
The move comes amid recent allegations that mortgage-servicers, which include units of major banks such as Bank of America Corp., submitted fraudulent documents in thousands of foreclosure proceedings nationwide.