Saturday, October 9, 2010

Attorneys General in 40 States Said to Join on Foreclosures

State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who asked not to be named because an agreement wasn’t completed. The number of states may change because several are deciding whether to join, the person said. New Mexico Attorney General Gary King said yesterday in a statement that his office will join a multi-state effort.
Lawyers representing the banks expect a widening investigation, according to Patrick McManemin, a partner at Patton Boggs LLP, a Washington-based law firm that represents banks, loan servicers and financial institutions. Bank of America Corp., the biggest U.S. lender, yesterday extended a freeze on foreclosures to all 50 states.
This is not surprising, this story hit a more critical pace when Ohio filed a lawsuit against JP Morgan.  I think this a bigger and much delayed start to a larger review on the practices of this mortgage and banking industry.

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