California and Nevada Attorney Generals Announce Joint Investigation into Foreclosure Fraud
Attorney Generals Kamala D. Harris of California and Catherine Cortez Masto of Nevada announced a joint investigation into foreclosure fraud on Tuesday. Though necessary nation-wide, the action is particularly salient geographically, as California and Nevada are the two states hit hardest by the housing crisis. In 2010, Nevada had the country's highest foreclosure rate at 9.4%, while California, with the second highest rate, had the largest number of total foreclosures: 569,000 filings.
The announcement reads:
The crisis in these Western states is similar because both states share a foreclosure system in which a bank can foreclose on a borrower's home without court oversight, also called "non-judicial foreclosure." The collective result has created a rich opportunity for predators, leading both states to make mortgage-related law enforcement action a top priority.
The timing of the announcement is appropriate, as today, December 6th, marks the beginning of Occupy Wall St.'s movement to occupy foreclosed homes.