Rep. Maxine Waters, D-Calif., the ranking member of the House Financial Services Committee, sent a letter Feb. 19 to Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry asking why an independent foreclosure review program was terminated following a multi-billion-dollar settlement with banks over questionable foreclosure practices, The Hill reported.
Sen. Elizabeth Warren, D-Mass., and Rep Elijah Cummings, D-Md., a ranking member of the House Government Reform and Oversight Committee, also have expressed concerns about the program’s termination and have written letters to regulators asking about the settlement, The Hill reported.
The Federal Reserve and the Office of the Comptroller announced the settlement Jan. 7.
The independent foreclosure review process began April 2011 and was designed to review the alleged questionable foreclosure practices of 14 banks, including Aurora, Bank of America, Citibank, HSBC, Goldman Sachs, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.
The settlement required the banks to provide cash payments and loan modification assistance to borrowers with homes in foreclosure in 2009 and 2010.
Officials said the program was closed following the single settlement because the loan-by-loan reviews were taking too long and that homeowners were not getting reimbursed for banks’ mistakes.
Curry told reporters in January that “It has become clear that carrying the process through to its conclusion would divert money away from the impacted homeowners and also needlessly delay the dispensation of compensation to affected borrowers,” The Hill reported.
Waters was not convinced and has asked for more information about the settlement and requested that the panel Chairman, Jeb Hensarling, R-Texas, hold a hearing on the settlement.