WASHINGTON (Reuters) - 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.
House of Representatives Speaker Nancy Pelosi and fellow Democrats wrote to Holder earlier this week asking that the department look into the matter after receiving reports from thousands of homeowners about their foreclosure woes.
The lawmakers said thousands of people have reported that, despite efforts to seek loan modifications or other relief, many financial institutions "routinely fail to respond in a timely manner, misplace requested documents, and send mixed signals" about what is required to avoid foreclosures.
Texas on Tuesday halted all foreclosures, sales of foreclosed properties and evictions from foreclosed properties until foreclosure practices are reviewed.
(Reporting by Jeremy Pelofsky. Editing by Robert MacMillan)
