Reuters reports this morning that the SEC has sent out more subpoenas to banks.
The SEC is particularly interested in learning about “master servicers.”
All of the big banks ran into problems with shoddy paperwork and legal procedures in their foreclosure process. Politicians and bureaucrats jumped all over them. Judges ruled against them. The foreclosure market gummed up. Bank stocks suffered.
Reuters: U.S. regulators have opened a new line of inquiry in their mortgage foreclosure probe and are asking big Wall Street banks about the beginning stages of mortgage securitization, two sources familiar with the probe said.
The Securities and Exchange Commission launched the new phase of its investigation by sending out a fresh round of subpoenas last week to big banks like Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N) and Wells Fargo & Co (WFC.N), the sources said.
The SEC’s subpoenas focus on the earliest stage of the mortgage securitization process, said the sources, who requested anonymity because the probe is not public.