Home > Avid Law Center > BofA Latest Addition To The Attorney General’s Mortgage Probe

BofA Latest Addition To The Attorney General’s Mortgage Probe

Banks have bypassed the laws in place to protect homeowners and deceptively processed possibly hundreds of thousands of foreclosures

Bloomberg has recently reported that Bank of America is the latest in a growing list of banks to receive a subpoena by The California Attorney General for information related to the packaging and sale of mortgage-backed securities.

Caught in the whirlwind of defaults and delinquencies, many banks were unprepared to handle the volume of foreclosures heading their way. In an effort to protect their interests, many began to fraudulently execute ownership documents related to the notices sent to delinquent borrowers and then filed with the courts to process foreclosures. With no consideration of right or wrong, the banks have bypassed the laws in place to protect homeowners and processed possibly hundreds of thousands of foreclosures with forged and phony paperwork. It’s only through thorough research of documents in lawsuits and court filings that these activities came to light, and it is unknown the extent of the fraud.

California Attorney General Kamala Harris is continuing a probe already begun by a special mortgage fraud task force designed to “investigate all stages of the mortgage-lending process, from origination to servicing and foreclosures to securitization of loans into investments in the secondary market.”

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