As investigations into the mishandling of foreclosures continue, a Chicago Sheriff has halted evictions. Cook County Sheriff Thomas Dart has let over 1,000 evictions pile up in his office. He has decided that his office will not evict hoemowners unless lawyers for the mortgae companies personally vouch that their actions are justified.  According to a recent Washington Post article "after reading about problems such as banks "robo-signing" foreclosure documents without verifying their accuracy, Dart asked that attorneys for mortgage companies sign something personally confirming that evictions are justified. None did. So Dart has refused to honor their requests."

Dart, whose office is responsible for physically evicting delinquent homeowners announced Oct. 19 that his deputies would "no longer be doing the banks' work for them anymore. I can't possibly be expected to evict people from their homes when the banks themselves can't say for sure everything was done properly," he explained.

"Frustrated by the banks' response to the foreclosure mess, a growing number of public officials - including chief judges, attorneys general and sheriffs from jurisdictions big and small - are pushing the boundaries of their powers to slow down foreclosures in their areas, according to the Post article.

Countrywide and Goldman Sachs have both agreed to record settlements this week for their involvement in the mortgage crisis. The settlements, both of which are over $500 million, are just the tip of the iceberg as far as legal woes for both companies.

Countrywide Financial Corp., the former mortgage giant, was purchased two years ago by Bank of America.  In what is being described as the largest payout so far from the mortgage meltdown, Countrywide has settled several class-action shareholder lawsuits for the sum of 600 million. The suits were initiated against Countrywide Financial Corp. claiming that the mortgage lender concealed mounting risks from shareholders as it loosened its standards for loans during the housing boom. By law corporations owe a fiduciary duty to shareholders and are bound by numerous disclosure requirements. Failure to make adequate, timely disclosures can expose corporations and executives to the risk of litigation. In addition to Countrywide, former CEO Angele Mozilo, former President David Sambol, for CFO Eric Sieracki and former board members were named in the litigation. As part of the settlement defendants admitted no wrongdoing. According to the LA Times however, the company is being investigated by the Securities and Exchange Commission (SEC), which filed a lawsuit accusing Mozilo, Sambol and Sieracki of misleading investors. The company and Mozilo are also under criminal investigation by the Justice Department and the attorneys general of California. Other states have also sued on behalf of borrowers.

Goldman Sachs is also settling charges of misleading investors. In addition to the $550 million settlement agreed to with the SEC, Goldman Sachs must reform its business practices. Unlike Countrywide however, Goldman Sachs acknowledged that its marketing materials contained incomplete information.