WASHINGTON, D.C. - The government is weighing its options after allegations of mortgage fraud at major banks. One of the possibilities: a nationwide foreclosure freeze.

This is a scandal that threatens to further derail the fragile housing market and it's one with huge implications this election year.

Senior White House Advisor David Axelrod acknowledges it's a "serious problem", but questions the need for a blanket stop to all foreclosures.

There are allegations that many foreclosures have been accompanied by forged documents, phantom titles, disappearing paper trails and faked social security numbers.

On Friday, Bank of America became the first bank to halt foreclosures in all 50 states.

The list of banks suspending at least some foreclosures is growing.

This week, the attorneys general of up to 40 states are expected to announce a joint investigation.