New York attorney general joins foreclosure probe

AP News
Posted: Oct 12, 2010 5:18 PM
New York attorney general joins foreclosure probe

New York Attorney General Andrew Cuomo asked several major lenders Tuesday for more information on the latest allegations of false statements accompanying foreclosure proceedings.

Cuomo, who is also a Democratic gubernatorial candidate, is joining a slew of attorneys general nationwide, who have in the last two weeks launched investigations or called on the banks to halt foreclosures in their states.

The banks' action follows growing evidence that mortgage lenders have been using flawed court papers and "robo-signers," or people who sign hundreds of documents without verifying the facts, to evict homeowners.

Cuomo said he wants more information from Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and GMAC Mortgage.

BofA has already halted foreclosures in all 50 states, while JPMorgan Chase, GMAC and PNC Financial have stopped foreclosures in 23 states. Wells Fargo hasn't suspended any foreclosures so far.