Federal and state agencies are closer to making a major announcement after investigating mortgage-backed securities fraud on Wall Street, CNNMoney reported.

The Residential Mortgage Backed Securities Working Group is made up of attorneys from the U.S. Justice Department, the Securities and Exchange Commission and the New York Attorney's General's Office. Representatives from the agencies will not say who or what they've been investigating, but indicated a major action could take place in the coming weeks or months, the news agency said.

The probe allegedly involves an investigation into the big banks' packaging and selling of toxic mortgages prior to the 2008 financial crisis, CNNMoney suggested.

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kpanchuk@housingwire.com