Thursday, October 14, 2010
KY Joins Foreclosure Investigation
KENTUCKY....
Kentucky has joined 48 states in launching a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.
Attorneys general and bank regulators say they will examine whether mortgage company employees made false statements or prepared documents improperly. Kentucky Attorney General Jack Conway says the alleged action of the banks may violate state law.
Alabama was the only state not to join the investigation.
Four large lenders -- Ally Financial Inc.'s GMAC Mortgage Unit, Bank of America and JPMorgan Chase & Co. -- already have halted questionable foreclosures after evidence emerged that bank employees processed thousands of foreclosure documents without reading them. Other banks have not stopped processing foreclosures, saying they did nothing wrong.
# posted by Homer Owens @ 11:16 AM 
