SEC Sends Banks More Subpoenas In Home-Foreclosure Probe -Reuters

The Securities and Exchange Commission has broadened its investigation of home-foreclosure problems in the U.S. by asking big Wall Street banks about the early stages of mortgage securitization, Reuters reported Friday, citing two sources familiar with the probe. The SEC last week sent out a new batch of subpoenas to Bank of America Corp. (BAC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Wells Fargo & Co. (WFC), according to the sources. The sources said the SEC has asked for information about the role of "master servicers" -- specialized firms that oversee the selection and maintenance of the large pool of home loans that go into every mortgage-backed bond. Earlier this fall, the SEC began looking into the banks' foreclosure practices in the wake of accusations that mortgage servicers were using shoddy paperwork to evict delinquent borrowers from their homes. The SEC had no comment, Reuters said.