WASHINGTON — The government is looking into allegations that mortgage lenders in the foreclosure crisis have been evicting homeowners using flawed court papers, Attorney General Eric Holder said Wednesday.
President Barack Obama’s financial-fraud-enforcement task force has a mortgage component to it, Holder noted during a news conference.
In a letter Tuesday, House Speaker Nancy Pelosi and dozens of Democratic lawmakers urged bank regulators and the Justice Department to probe whether mortgage companies violated any laws in handling foreclosures and borrowers’ requests for loan assistance.
In Ohio, state Attorney General Rich ard Cordray is suing Ally Financial and its GMAC Mortgage division, alleging fraud that could involve hundreds of foreclosures in the state.
It could be the first in a wave of suits by state attorneys general over what appear to be widespread problems in documents used by the nation’s largest mortgage lenders.
The Associated Press
