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Who’s to blame in foreclosure fiasco?
The building furor over whether the largest U.S. mortgage lenders used so-called robo-signers and incomplete paperwork to force delinquent borrowers from their homes has mushroomed into a probe by the attorneys general in all 50 states.
Those on Wall Street, however, are largely unsympathetic, insisting that possible errors in the foreclosure process are beside the point and that the process begins only when a borrower starts missing mortgage payments.
The potential fallout has raised questions about the depressed U.S. housing market, which was being helped by foreclosure sales. It has also put pressure on stocks as investors worry about the impact on banks’ financial health.