Forty states investigate banks accused of flawed foreclosures - KSLA News 12 Shreveport, Louisiana News Weather & Sports

Forty states investigate banks accused of flawed foreclosures

WASHINGTON (AP) - The attorneys general of up to 40 states plan to announce soon a joint investigation into banks' use of flawed foreclosure paperwork.

A person briefed on the investigation says an announcement could come as early as Tuesday. The person spoke on condition of anonymity because the investigation was not yet public.

Iowa Attorney General Tom Miller will lead the investigation. Miller already has been leading multistate reviews of questionable foreclosure documents.

A joint investigation by 40 states would further escalate pressure on banks to expand halts on foreclosures.

On Friday, Bank of America became the first bank to do so in all 50 states.

The plans for a joint inquiry were reported earlier by Bloomberg News.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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