California to join multi-state investigation into foreclosures

California officials are joining a multi-state effort to investigate mortgage “robo-signers” – employees of lending institutions who’ve approved foreclosures without reading the documents.

Jim Finefrock, a spokesman for California Attorney General Jerry Brown, said today his office will participate in the investigation. The effort is to be led by Iowa Attorney General Tom Miller.

Brown has previously called on all lenders to halt foreclosures in California temporarily. He also issued demands to two lenders – Ally and JP Morgan Chase – to stop California foreclosures until they can show they’re following state law.

Finefrock said Brown’s lawyers are in talks with Ally and Chase. California law prohibits lenders from issuing default notices – the first step toward foreclosure – until they’ve made serious efforts to contact homeowners to see if their loans can be modified. The law applies to mortgages issued from 2003 to 2007.