Blumenthal Announces Senate Probe of Mortgage Servicers

Sen. Richard Blumenthal said Monday the Senate Judiary Committee will investigate alleged abuses by mortgage servicers, including improper loan modification agreements and shoddy foreclosure procedures, which may have resulted in improper home seizures.

Outrageous homeowner fees and inept tracking procedures by mortgage servicers have contributed to a rising number of unjustified foreclosures, Blumenthal said at a press conference Monday at the Legislative Office Building in Hartford.

Blumenthal said he has introduced a bill that would restrict fees and impose penalties on mortgage servicers who engage in fraudulent and deceptive practices.

“The law needs to be improved so that this kind of abuse can be caught,” Blumenthal said. “This problem spans the entire state of Connecticut…One out of 119 homes in the Connecticut is in foreclosure; 7,250 homes in the state are in foreclosure.”

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