Pelosi, Calif. Dems Demand Servicing Probe

Members of the California Democratic Congressional Delegation have urged federal agencies to launch a probe on servicers – the latest fallout from the discovery that several major lenders have not followed the letter of the law when executing legal documents.

In an Oct. 4 letter, lawmakers, including House Speaker Nancy Pelosi, wrote to Federal Reserve Chairman Ben Bernanke, U.S. Attorney General Eric Holder and Acting Comptroller of the Currency John Walsh, asking the agencies to investigate possible violations of the law relating to the servicing of delinquent loans.

The lawmakers say servicers routinely fail to respond to borrower inquiries in a timely manner, misplace documents and ‘send mixed signals about the requirements that need to be met to avoid foreclosures,’ according to a copy of the letter published online by The Washington Post.

Reports of flawed affidavits at Ally Financial, Chase and Bank of America have ‘amplified our concerns,’ the lawmakers wrote.

SOURCE: The Washington Post


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