A pair of Democratic lawmakers has insinuated that the Federal Reserve and the Office of the Comptroller of the Currency (OCC) might be covering up ‘criminal activity’ in the $9.3 billion mortgage servicing settlement that effectively ended the Independent Foreclosure Review.
Reuters reports that Sen. Elizabeth Warren, D-Mass., and Rep. Elijah Cummings, D-Md., are demanding to meet with the regulators in order to gain further information on the settlement, which was announced in January. Warren and Cummings claim they were unsatisfied with the information provided by the regulators on the circumstances that led to the settlement, which involved 13 financial institutions.
‘Criminal activity should not be shielded by regulators as if it constitutes proprietary information or trade secrets,’ Warren and Cummings wrote in a letter to the Federal Reserve and the OCC. ‘We continue to believe transparency is critical around the operations of the review and settlement processes.’
The lawmakers did not publicly state which entity was involved in ‘criminal activity’ or what specific crimes may have been committed. They have asked the regulators to meet with them on April 9.