Justice Dept. to Probe Foreclosures
The Hill reports:
The Justice Department will probe the foreclosure practices of financial institutions for possible violations.
Attorney General Eric Holder announced a task force housed in the Justice Department will look into the foreclosure practices of a number of financial institutions for possible violations.
At a Wednesday press conference, Holder said the Financial Fraud Enforcement Task Force will probe a number of foreclosure proceedings in a growing number of states where questions have been raised.
The announcement follows a letter from House Speaker Nancy Pelosi (D-Calif.) and 30 other California House Democrats calling for a Justice investigation.
"We are aware of the charges that have surfaced in the newspapers in the last couple of days, and we're looking at them," Holder told reporters Wednesday.
Pelosi and the other lawmakers have charged that homeowners have been unable to obtain help such as loan modifications because banks never responded, lost paperwork and didn't provide straightforward information on what they needed to do to avoid foreclosure.
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