New York Attorney General Eric Schneiderman is investigating big banks like Bank of America Corp
The Attorney General will hold meetings with bank executives and has requested related documents from the firms, the Journal said.
Huffington Post on Monday reported the inspector general of the Department of Housing and Urban Development has concluded that Bank of America, JP Morgan Chase
Bank of America and Wells Fargo declined to comment on Monday, while representatives for the other servicers were not immediately available for comment.
The U.S. Securities and Exchange Commission is also in talks with major Wall Street banks to settle allegations of fraud relating to sale of toxic mortgage bonds that helped unleash the financial crisis.
Bank of America, Morgan Stanley and Goldman Sachs could not immediately be reached by Reuters for comment on the Journal report outside regular U.S. business hours.
(Reporting by Rachel Chitra in Bangalore; Editing by Vinu Pilakkott)