California and Nevada, which suffer the highest foreclosure rates in the country, will team up to investigate mortgage abuses by the nation's largest banks.
California Attorney General Kamala Harris joined Nevada Attorney General Catherine Cortez Masto in Los Angeles today to announce the alliance, saying it will speed along dual investigations in the states, both among the nation's hardest hit by the mortgage fraud crisis.
The deal comes as the two states pulled out of nationwide settlement talks with the banks and have aggressively pursued independent investigations into the so-called "robo-signing" practices in which banks and mortgages servicers were accused of rubber stamping foreclosures without actually reviewing homeowners documents.
Harris has subpoenaed some of the nation's largest financial institutions such as Fannie Mae, Freddie Mac, Bank of America Corp. and Lender Processing Services Inc.
Last December, Masto sued Bank of America for violating a three-year-old loan modification agreement with the state over predatory lending policies by its Countrywide unit.
Read the rest of the article at the Sacramento Bee
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