In letter to DOJ, Cantwell demands full investigation into robo-signing scandal and ‘pump and dump’ mortgage bubble scheme
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“Cantwell also raised the concerns that not enough reforms are in place to effectively prevent another crisis and that victims of fraudulent mortgage schemes are not adequately compensated. Cantwell encouraged Holder to require reforms to ensure mortgage servicers don’t abuse the system again. She noted that confidence in the proper transference of notes and mortgages must be restored and clear chains of titles should be available for all mortgages. Until financial institutions can prove they have the legal authority to foreclose, Cantwell asked for the Mortgage Electronic Registration System to be shut down.”

“A settlement with mortgage servicers must also require reforms to ensure such abuses do not happen again,” Cantwell wrote. “The goal of servicing mortgages must be accuracy and adherence to the law, not expediency and corner-cutting. Confidence must be restored that proper transference of notes and mortgages was followed and clear chains of titles are available for all mortgages. Until then, the burden of proof must be on financial institutions to prove that they have the legal authority to foreclose. The Mortgage Electronic Registration System should be dissolved and shut down, and the shortcut that allowed banks to avoid hundreds of millions, if not billions, in local fees to local registrars of deeds be closed off.”

http://cantwell.senate.gov/news/record.cfm?id=335169

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Maria Cantwell – U.S. Senator from Washington State
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Maria Cantwell – U.S. Senator from Washington State