Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Goldman (NYSE:GS), Wells (NYSE:WFC) Getting Mortgage Securitization Scrutiny from SEC

Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC), among others, are receiving new attention from the Securities and Exchange Commission over mortgage foreclosures, specifically in the area of the early part of mortgage securitization.

The banks received subpoenas recently in regard to the new investigation.

Information being sought is in regard to what are identified as "master servicers." These are companies which oversee the early stage of the selection process, while maintaining the gigantic pool of home loans that are part of each bond backed by a mortgage.

This has all arisen from the paperwork fiasco where some borrowers were evicted from their homes unjustly, or under questionable circumstances.

Various elements of the early stage of the process are under investigation to get clarity and see if there was any wrongdoing.