Ganging Up

States Join to Halt Foreclosures

Coalition will make their case Wednesday.

Could a national moratorium on foreclosures be around the corner? A group of as many as 40 states’ attorneys general is forming a coalition to push for an investigation into the mortgage industry on Wednesday, The Wall Street Journal reports. The news follows a series of allegations that major banks—including Bank of America, the country’s largest—have included fraudulent documents as part of foreclosure agreements. “I think the mortgage-servicing firms need to understand that they face real exposure now,” said Ohio Attorney General Richard Cordray. The Obama administration, meanwhile, has declined what would be a populist stance of supporting the moratorium.