Kansas Attorney General Steve Six said today that his office continues to study the state's possible involvement in a burgeoning nationwide mortgage fraud case against some of the nation's financial giants.
"We can't tolerate fraud, but I don't think we can shut down the mortgage foreclosures, at least in the cases we've looked at in our office. We're not talking about people who shouldn't be in default, but maybe we haven't connected with the right holders," Six told an audience at the Wichita Bar Association.
In at least six states, attorneys general are calling for foreclosure moratoriums and launching their own investigations. And this week, the attorneys general of up to 40 states are expected to announce a joint investigation into banks' use of flawed foreclosure paperwork.
Six said his office proposed a mortgage foreclosure unit to the Kansas Legislature in 2008, but that office was never funded.