Attorney General Eric Holder this week announced a federal investigation into foreclosure fraud and the involvement of the nation’s largest banks.
Holder said that the newly-formed Financial Fraud Enforcement Task Force will probe foreclosure practices in those states—23 of them—where bank’s attorneys have been accused of submitting falsified evidence to obtain foreclosures.
The move by the feds apparently responds to a demand by House Speaker Nancy Pelosi for an investigation into the ever-growing allegations of banks perpetrating fraud on the court system. In a letter to the Department of Justice, Pelosi wrote:
It appears that banks have repeatedly misled and obstructed homeowners from receiving the help Congress and the administration have sought to provide. The excuses we have heard from financial institutions are simply not credible three years into the crisis.
The task force will include federal, state, and local authorities.
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