WASHINGTON (AP) -- Allegations of possible mortgage fraud against major financial institutions are forcing government officials to weigh options, including a possible freeze on foreclosures.
Housing analysts have watched as the once-staid world of back-office bank procedures has spawned a scandal that threatens to further unhinge the housing market.
Senior White House adviser David Axelrod acknowledges it's a "serious problem" but questions the need for a blanket halt to all foreclosures but the idea has gained traction in some quarters.
There are allegations many foreclosures have been accompanied by forged documents, phantom titles, disappearing paper trails and faked Social Security numbers.
The list of banks suspending at least some foreclosures is growing.
This week, the attorneys general of up to 40 states are expected to announce a joint investigation.
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