Ohio's governor and attorney general said Thursday they would issue subpoenas and take other aggressive measures against subprime mortgage lenders.
The subpoenas could lead to possible prosecution against lenders under antitrust and civil rights laws, as well as the Consumer Sales Practices Act.
The announcement came about a month after Gov. Ted Strickland asked the lenders to enter an agreement to help struggling homeowners stay in their homes through various measures, such as offering six months' notice before an adjustable rate mortgage was to reset.
"Their refusal to sign the compact speaks volumes about their crass disregard for the people they have hurt and the communities they have destroyed house by house, street by street, block by block," Ohio Attorney General Marc Dann said.
Individual lenders failed to respond, and the Ohio Mortgage Bankers Association gave an inadequate response late Wednesday, Strickland said.
FIND MORE STORIES IN: Thursday Mortgage Bankers Governor Gov. Ted Strickland Ohio Attorney General
"Unfortunately nothing very meaningful was shared with this office by the servicers as far as their willingness to work with the administration in a truly substantive manner," he said.
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