Illinois and California Investigate Mortgage 'Robosigning'

(SACRAMENTO, Calif.) -- On Wednesday, the attorneys general of California and Illinois announced that they are investigating two lending companies that process mortgages in their states.

California Attorney General Kamala Harris announced on Wednesday that she had subpoenaed Florida-based Lender Processing Services Inc., a company which processes 50 percent of the country's mortgages. They are accused of "robosigning," a practice of signing documents without verifying information. Harris created a mortgage fraud task force on Monday to monitor and prosecute violations in the mortgage process.

Illinois Attorney General Lisa Madigan sent subpoenas to Lender Processing Services Inc. and Nationwide Title Clearing Inc., a company that provides mortgage loan services to eight of the top 10 lenders and mortgage servicers in the country. Madigan is investigating fraudulent practices by banks and mortgage institutions.

"Foreclosure became a rubber-stamping operation that robbed many homeowners of the American Dream without a fair and accurate process," Attorney General Madigan said. "I will not relent in my investigation into the fraudulent practices by lenders and others that caused and exacerbated the mortgage crisis and the resulting massive foreclosure crisis."

Copyright 2011 ABC News Radio

California Pizza Kitchen Bought by Private Equity Firm

(LOS ANGELES) -- The California Pizza Kitchen restaurant chain announced Wednesday that it was being bought by a private equity firm for $470 million.

Golden Gate Capital, a San Francisco-based firm, will start buying out Pizza Kitchen shareholders for $18.50 a share. Golden Gate already owns several big-name retailers, including Eddie Bauer and Express.

California Pizza Kitchen was founded in Los Angeles in 1985. It currently has 265 locations worldwide.

Copyright 2011 ABC News Radio

State Officials Issue Subpoenas in Foreclosure Investigation

(LOS ANGELES) -- California and Illinois are among four states that have or are in the process of issuing subpoenas as part of an investigation into foreclosure practices by banks and mortgage-servicing companies.

The other two states, Connecticut and Utah, have also sent letters to companies alleged to have participated in illegal or improper practices.

According to officials, the country-wide investigation -- which includes 50 states -- centers around suspicions that mortgage-servicing businesses are engaging in a practice known as "robo-signing", whereby homeowners are being foreclosed by a rubber-stamping operation that negates a fair and personalized assessment of their situation.

State officials say the nature of the subpoenas are intended to demand accountability by demanding information on companies' clients and practices with foreclosure firms. On Tuesday, representatives for the investigation met with bank officials to discuss the possibility of civil lawsuits.

Copyright 2011 ABC News Radio

AG: California Homicide Rate Drops to Lowest in 44 Years

(SACRAMENTO, Calif.) -- The homicide rate in California for the year 2010 is the lowest the rate has been in over 40 years, according to the Department of Justice.

Attorney General Kamala Harris announced on Tuesday that the homicide rate in 2010 represented a decline of 9.6 percent as compared to 2009, when the state recorded 1,970 homicides.

"The decline in homicides and other violent crimes reflects the tireless efforts of our peace officers," said Attorney General Harris. "My office is committed to supporting their brave, relentless and selfless work in protecting the people of California from hardened criminals."

Data from the Department of Justice indicate that the latest homicide figures are the lowest since 1966.

Copyright 2011 ABC News Radio

CSU Presidents Meet with Gov. Brown About Budget

(SACRAMENTO, Calif.) -- California State University system presidents met Gov. Jerry Brown Tuesday to avoid a $1 billion budget cut.

According to ABC 7 News, CSU already lost $500 million in state funding for the 2011-2012 year, resulting in cuts in courses and staff lay-offs. The presidents informed Brown of the impact the cuts will have on their institutions if additional revenue is not raised.

"A 32 percent increase in tuition would be about $1,600 for every one of our students next year," said CSU Chancellor Charles Reed.

Brown stated that negotiations were positive and he was optimistic about getting the four Republican votes needed to avoid more cuts.


Copyright 2011 ABC News Radio