FBI Reportedly Looks at Foreclosure Mess

The Associated Press is reporting the Federal Bureau of Investigation is digging into the foreclosure documentation problems to see if any criminal charges are warranted.
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NEW YORK (

TheStreet

) -- The Federal Bureau of Investigation is reportedly looking into whether there was any criminal misconduct in the foreclosure documentation problems that have recently gripped the big banks.

An

Associated Press

report late Tuesday said the FBI is in the initial stages of looking into the cause of the delays and suspensions of foreclosures which have recently occurred at

Bank of America

(BAC) - Get Report

, the former GMAC

Ally Financial

, and

JPMorgan Chase

(JPM) - Get Report

.

The news follows reports earlier Tuesday that

institutional investors are pressuring

Bank of America to repurchase $47 billion worth of mortgage-backed securities.

The

AP

cited an FBI official speaking on the condition of anonymity as the source of its report.

At issue is whether the banks who resorted to so-called "robo-signing," where employees are speeding documents along without actually reading them, acted with any criminal intent.

Bank of America announced it was resuming foreclosures in 23 states on Monday, saying it expects to begin resubmitting the first foreclosure affidavits on Oct. 25.

The bank, which

reported its quarterly results

Tuesday morning, continues to delay foreclosures in the remaining 27 states as it reviews its processes.

--

Written by Michael Baron in New York.

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