October 13, 2010
Virginia Attorney General Ken Cuccinelli promises that a national investigation into mortgage foreclosure practices will be thorough and fair to both homeowners and lenders.
Cuccinelli said Wednesday that he is joining 48 other state attorneys general in an investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners nationwide. Alabama is the only state not participating.
"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess," says Iowa Attorney General Tom Miller, who is leading the probe.
The panel will investigate whether individual mortgage servicers misrepresented in documents that they reviewed and verified supporting foreclosure documentation. It also will examine whether companies signed affidavits outside the presence of a notary public, along with other possible issues regarding servicing irregularities or abuses.
Four large lenders already have halted questionable foreclosures after evidence emerged that bank employees processed thousands of foreclosure documents without reading them. Other banks have not done so, saying they did nothing wrong.