Justice Department looking into home foreclosure mess
The Justice Department is looking into reports that U.S. financial institutions improperly foreclosed on houses, Attorney General Eric Holder said on Wednesday. Several states are investigating the practices of institutions like Ally Financial Inc, formerly known as GMAC, and JPMorgan Chase and Co, among others, and those two have suspended foreclosure proceedings in many states. The home lending unit of Ally has said that employees preparing foreclosures had submitted affidavits to judges containing information they did not personally verify, drawing outrage from homeowners, lawmakers and state prosecutors. "We are aware of the charges that have surfaced in the newspapers in the last couple of days and we're looking at them," Holder told reporters during a news conference on another matter.