Texas Attorney General Subpoenas JP Morgan, Bank of America and Other Loan Servicers on Their Foreclosure Practices!

At least one Attorney General is taking a proactive step in the foreclosure FRAUD!  The Texas Attorney General has Subpoenaed Bank of America, JP Morgan and other Loan Servicers about their Foreclosure Practices!

Portions:

“The state is subpoenaing information and documents,” Jerry Strickland, the spokesman, said yesterday in an interview. He didn’t elaborate. The state also subpoenaed Ally Financial Inc., CitiMortgage Inc. and Wells Fargo & Co.

Abbott began investigating foreclosure practices in Texas following the disclosure of a December deposition in which an employee of Ally’s GMAC Mortgage unit testified that his team signed about 10,000 documents a month without verifying their accuracy. On Oct. 13, all 50 state attorneys general announced a joint investigation of foreclosures.

The Texas subpoenas followed letters sent by Abbott’s office to 30 loan servicers on Oct. 4, asking them to halt foreclosures in the state pending a review of their practices.

Abbott asked banks then to identify employees who filed faulty affidavits or other documents in the state and identify foreclosures that used such documents. He also asked lenders and servicers to halt all sales of properties previously foreclosed upon and stop all evictions.

Uproar over Foreclosure Fraud, gets Louder! Congress calls for Federal Investigation - Texas Attorney General Calls for a Freeze of Foreclosures in that State now!

I do have to wonder if lots of this outrage from Congress is due to this being an election year, compared to be the "real deal".  Are those elected officials playing the part of wanting an investigation into MERS foreclosure fraud to pander to the people and it will all change after the election into "jeez we can not do anything about it"?

Right now, I will enjoy the information of all the fraud getting out though.  New York times did this article about the Foreclosure FRAUD and elected officials calling for a freeze in ALL foreclosures.

Portions:

The uproar over bad conduct by mortgage lenders intensified Tuesday, as lawmakers in Washington requested a federal investigation and the attorney general in Texas joined a chorus of state law enforcement figures calling for freezes on all foreclosures.

Representative Nancy Pelosi, the House speaker, and 30 other Democratic representatives from California told the Justice Department, the Federal Reserve and the comptroller of the currency that “it is time that banks are held accountable for their practices.” 

Texas Attorney General Greg Abbott, a Republican, sent letters to 30 lenders demanding they stop foreclosures, evictions and the sale of foreclosed properties until they could provide assurances that they were proceeding legally.