Attorneys general discuss mortgage probe

Attorneys general from about 12 different states met recently to discuss possibly conducting mortgage probes into the banks that are suspected of using shoddy foreclosure practices on homeowners. The goal of the investigations would be to collect evidence, persecute the lenders and obtain reimbursement for the financial damages caused by the illegal foreclosure practices to affected homeowners.

The group of attorneys general included Eric Schneiderman from New York, Martha Coakley of Massachusetts and Kamala Harris from California, Bloomberg reports. Each of these attorneys general decided to exit a national effort against the banks when they realized the punishment would not be enough to fully compensate their affected constituents.

As part of the talks with other attorneys general, the banks are working on a way to settle the single dispute in exchange for immunity from any future investigations. Therefore, these attorneys general have launched their own investigations into suspected lenders as negotiations with banks make little progress, the source reported.

The Huffington Post reported the negotiations between the banks and other attorneys general led by Tom Miller from Iowa is struggling to come to a resolution, further encouraging individual attorneys general to conduct their own investigations into the lenders' practices.

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