House Members from California Seeking Investigation on Foreclosures

House Members from California Seeking Investigation on Foreclosures

10/8/2010

Some House members from California call on federal regulators to investigate if mortgage companies violated the law when they used paperwork that might have contained errors in relation to the foreclosures that swept the nation.

Democratic lawmakers namely Rep. Zoe Lofgren, along with House Speaker Nancy Pelosi, led other members of the House in urging the Justice Department and bank regulators to examine if the mortgage companies broke the law when they handled the foreclosures and the requests of borrowers for loan assistance.

The letter was sent to Attorney General Eric Holder, John Walsh, who was the acting comptroller, and Federal Reserve Chairman Ben Bernanke. Walsh and Holder or any representative, declined to comment, while the spokesman of the central bank said that they will be responding to the letter.

This action by the lawmakers was by far the strongest push for the intervention of the federal regulators in the foreclosure process of the country.

Three banks namely, JPMorgan Chase, Bank of America and Ally Financial stopped foreclosures in 23 states, which was brought about by evidence that showed their employees signing documents without reading them. Some filed inaccurate paperwork.

A number of federal officials have been putting pressure on the mortgage industry about possible law violations.

WRITTEN BY:

blakeh@wellsdrew.com