California, Illinois AGs Slap Subpoenas On Foreclosure Document Preparation Sweatshop As Some States Begin Acting Independently Of 50-State AG Probe

Bloomberg reports:

• The attorneys general of four states including Illinois and California announced new demands in their probes of foreclosure practices by banks and the mortgage- servicing industry.
• California Attorney General Kamala Harris said [] she subpoenaed Lender Processing Services Inc. (LPS) as part of her investigation into so-called “robo-signing,” the practice signing foreclosure documents without verifying their accuracy.
• Illinois Attorney General Lisa Madigan is issuing subpoenas to Lender Processing and Nationwide Title Clearing Inc., another Florida-based company, she said [].
• “Foreclosure became a rubber-stamping operation that robbed many homeowners of the American dream without a fair and accurate process,” Madigan said in a statement. “California homeowners have been exposed to fraud and crime at every step of the mortgage process,” Harris said in a separate statement.

For more, see Four States’ Lawyers Announce New Foreclosure Probe Actions.

Go here for the AG press releases:

• Illinois: Madigan Issues Subpoenas; Widens 'Robosigning' Probe;
• California: Attorney General Kamala D. Harris Subpoenas Loan Processor LPS in Wide-Ranging Probe of Mortgage and Foreclosure Practices.