Cummings Seeks “Engagement Letters” Due Today Between Mortgage Banks and Private Consultants

Cummings Seeks “Engagement Letters” Due Today Between Mortgage Banks and Private Consultants

Ranking Member calls on federal bank regulators to provide copies of agreements to review widespread mortgage abuses
Washington, DC – Today, Ranking Member Elijah E. Cummings wrote to federal banking regulators to request copies of “engagement letters” between 14 mortgage servicing companies and the private consultants they hired to review their widespread foreclosure abuses. The deadline for federal regulators to approve these engagement letters is today.

The engagement letters were required after the Office of Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Department of Treasury’s Office of the Thrift Supervision issued a report on April 13 finding “critical weaknesses” and widespread risk” with the foreclosure practices of the 14 banks, and ordering more comprehensive reviews.

“After reviewing only a sampling of the banks’ files, the federal regulators found systemic problems, illegal foreclosures, and inflated fees.  I’m worried that this is only the tip of the iceberg,” said Cummings.

The regulators directed the mortgage servicing companies to hire private consultants to conduct broader reviews, to determine any financial injury to borrowers caused by errors, misrepresentations, or other deficiencies, and to remediate those deficiencies. Some outside groups have criticized the federal regulators’ decision to allow banks to hire their own private consultants and set the terms of the reviews, asserting that their results will be biased and favor the banks.

“There has been a lot of concern with the idea of letting the banks hire their own private consultants to police themselves,” said Cummings.  “The regulators say they are approving these agreements and holding banks accountable—we want to make sure.”

Ranking Member Cummings has requested copies of these letters by June 3. A copy of his letter follows.

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4closureFraud.org

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Elijah E. Cummings Letter to Federal Banking Regulators

Comments
6 Responses to “Cummings Seeks “Engagement Letters” Due Today Between Mortgage Banks and Private Consultants”
  1. DanJS says:

    Wait! I’ve misread the article. Cummings is seeking to discover the “terms and conditions” of the contracts the “independant consultants” hired by the banks.

    Mea Culpa! My apologies to Cummings…… replaced now by Kudos!

    Keep on keeping on, Elijah!

  2. DanJS says:

    Please… Someone tell me why Cummings would even think of letting the banks hire their own consultants and expect them to submit non-biased reports about the actions of the very institutions and individuals who have created this mess and will be paying for the “reports”?

    Please explain…. This doesn’t make sense (especially for a politician.) What is missing here regards Cummings himself?

    What are these “engagement letters”? If anything sounds like a “sweetheart deal” this has got to be it. Who’s paying for the “engagement party”? Is there a “dowry” being paid to someone? … If so, to whom?

    Don’t tell me that the “deadbeats” weren’t invited on purpose! Who is officiating at the “wedding.” How soon can we expect the “divorce” and property settlement to be negotiated? This is a “sham wedding” isn’t it?

    Who ends up with a “manipulated citizenship” and the taxpayer funded “perks” that result from this “arranged marriage”?

  3. pamelag says:

    i will volunteer to review their files free of charge.

  4. l vent says:

    They are still sneaking around trying to find ways to patch up the holes in their pirate ship.
    They can take all the time they want.
    This mess cannot be fixed in any legal way, shape or form.
    The damage is done and it is time for them to realize it and FANNIE/FREDDIE AND THE BANKSTERS TO EAT THEIR LOSSES AND PAY BACK AMERICA’S STOLEN WEALTH!!!!
    WE WERE ROBBED, BY THE FOREIGN MULTINATIONALS POSING AS AMERICAN INSTITUTIONS.
    IT WAS THE BIGGEST FOREIGN MULTINATIONAL PONZI SCHEME SWINDLE AND HEIST OF AMERICA IN OUR HISTORY.
    THIS SCHEME WENT WILDLY INTO FULL GEAR BY NONE OTHER THAN THAT RAT, BILL CLINTON WITH HIS NAFTA AGREEMENT WHICH SENT MANY CORPORATIONS AND AMERICAN JOBS OVER SEAS, AND TELLING EVERYONE TO GO BUY A HOME, IT IS THE AMERICAN DREAM!!!!!!!!!! BILL CLINTON IS NO MORE THAN A FOREIGN MULTINATIONAL NEW WORLD ORDER PERP, A PIMP AND A TRAITOR OF THE U.S. FOR THE U.N./ NEW WORLD ORDER AND SO WAS GEORGE W. BUSH BY ALLOWING 9/11 TO “HAPPEN” TO AMERICA UNDER HIS WATCH.
    CNBC REPORTED, WALL STREET MADE 60 TRILLION DOLLARS OFF OF MORTGAGE DERIVATIVES IN 1999 ALONE.
    NATIONAL SOVEREIGNTY WILL PREVAIL UNDER THE U.S. CONSTITUTION.
    IT IS TIME FOR THE AMERICAN PEOPLE TO WAKE UP, AND THROW ALL OF THE TREASONISTS, TRAITOR POLITICIANS, BOTH REPUBLICON AND DEMORAT OUT ON THEIR EARS.
    THEY HAVE LOST THE FULL FAITH AND TRUST OF THE AMERICAN PEOPLE. THIS IS OUR COUNTRY AND THEY ARE DESTROYING OUR FREEDOM AND OUR NATIONAL SOVERIEGNTY UNDER THE U.S. CONSTITUTION.
    THEY MAY HAVE HIJACKED AMERICA, BUT THEY DON’T OWN IT.
    OUR HOMES ARE PAID FOR FREE AND CLEAR BECA– USE OF THEIR HUNDREDS OF TRILLIONS OF DOLLARS PONZI SCHEME. RESCIND!!!!!!!!!!!!!!!!!

  5. woodknot says:

    Once again the Banks & Servicers their “private consultants” are being catered too.
    The Feds are being treated with kid gloves…
    This letter is a friendly (far too friendly) reminder to respond in a timely manner which none of these agencies are capable of, just as they have done with all their “services”, they drag out Mods, tie up the Judicial processes and torture Homeowners as long as possible-with no respect for our Legal Rights.
    Notice the politeness using please, several times………this is ridiculous, sickens me to my stomach knowing it is just another staged inquiry by another Government Committee stalling for time to create more lies.
    God help us to reveal the truth, expose & prosecute all of these people with no integrity or morals.

  6. Pamela says:

    How do the American people know that these private sector reviewing agencys are not just as crooked and slimey as the servicers are.Isn’t this a conflict of interest if the servicers are allowed to hire these firms.It seems to me once again things are skewed to go to the lenders and thier servicers and not the home owners who are the ones who have been frauded and had the crimes perpetrated against us.All of a sudden they are concerned about these documents but 2 to 4 years ago they weren’t concerned in the least.Come on you would have to be born yesterday if you believe this one.Thier concern level is for themselves only,not us.If they are that concerned lets see some action talk is cheap.

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