We've noted before that the foreclosure fiasco has become something of a populist issue. A great sign of this is that state attorneys general seem to be at the vanguard of the multi-level probe into possible wrong-doing. They are bent on rooting out any fraud and at a minimum shockingly shoddy practices. Led by Tom Miller of Iowa, they seem to be mobilized.

Their goal is to keep people in their homes. And they will likely press for a solution that calls for more modifications. The AG in Missouri, for example, is out with some tips for homeowners about how to ensure their foreclosure is being properly handled.

Federal investigators on the other hand seem more nervous about the national economic implications of the foreclosure fiasco, which has really gummed up the real estate industry and certainly could act as a drag on the entire economy. It's fair to say that the national effort to produce more modifications has had limited success. We'll see if the states fare better.

For more:
- here's the Times article
- here's a Reuters article

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