Foreclosure Settlement With Banks Questioned by U.S. Lawmakers

Leaders of the House Oversight and Government Reform Committee are questioning a settlement pending between U.S. banking regulators and mortgage servicers to close a years-long review of mortgage servicers’ foreclosure misdeeds.

Committee Chairman Darrell Issa, a California Republican, and the panel’s ranking Democrat, Elijah Cummings of Maryland, sent a letter to the Office of the Comptroller of the Currency and Federal Reserve today asking for more information about how homeowners would be affected by a proposed settlement with 14 mortgage servicers, including JPMorgan Chase & Co., (JPM) Bank of America Corp. and Citigroup Inc.. (C)

“We respectfully request a staff briefing prior to the conclusion of the reported settlement agreement,” the lawmakers wrote in the letter. “We would like more information about how the potential settlement amount is to be determined in light of potential wrongdoing identified to date, how such aid may be distributed and in what form, and what may happen to homeowners’ files that are still awaiting review.”

Rest here…

Copy of the letter below…



Issa Cummungs Letter