The ongoing foreclosure mess is wending its way into the heartland. A group of state attorneys general from as many as 40 states are anticipated to roll out an investigation of the mortgage industry as early as tomorrow
in response to recent allegations that the mortgage units of major banks had filed fraudulent paperwork in thousands of foreclosures. Several of the attorneys general along with many members of Congress have demanded a moratorium on all foreclosures
until the extent of the possible fraud is known. Meanwhile, today White House spokesman Robert Gibbs (pictured) warned against a widespread moratorium on foreclosures
, arguing that such an action could damage the still-fragile housing recovery.