Foreclosure fraud investigation of top U.S. banks spreads to all 50 states

49 states have frozen forclosure proceedings
49 states have frozen forclosure proceedings

Attorneys General from every state have joined forces to investigate a nationwide foreclosure scandal in which leading U.S. financial institutions proceeded evicting homeowners based on potentially false documentation.

State law enforcers today announced formation of the Mortgage Foreclosure Multistate Group, which brings together attorneys general from 50 states, as well as and banking and mortgage regulators from more than 30 states.

"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible," said Iowa Attorney General Tom Miller, who leads the group, in a statement. "This is not simply about a glitch in paperwork. It's also about some companies violating the law and many people losing their homes."