Cummings Calls for Hearing with Banks And FHFA's DeMarco re: Complaints alleging improper foreclosures and fraudulent servicing practices.


Cummings Calls for Hearing with Banks And FHFA’s DeMarco re: Complaints alleging improper foreclosures and fraudulent servicing practices.

Cummings Calls for Hearing with Banks And FHFA’s DeMarco re: Complaints alleging improper foreclosures and fraudulent servicing practices.

Banks Ignore Homeowner Complaints; New IG Report Faults FHFA Leadership

 Cummings Calls for Hearing with Banks And FHFA’s DeMarco

Washington, D.C. (March 21, 2013) — Today, Congressman Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, released a new report issued by the Inspector General of the Federal Housing Finance Agency (FHFA) warning that mortgage companies that service loans backed by Freddie Mac “have largely failed to implement” requirements to resolve “escalated cases” of serious homeowner complaints alleging abuses such as improper foreclosures and fraudulent servicing practices.

“Today’s report reveals the latest in a sorry string of failures by FHFA leadership to protect American homeowners,” said Cummings. “After so many reports documenting the abuses homeowners have suffered at the hands of mortgage servicers, it is unconscionable that FHFA has failed to require mortgage servicers to properly handle tens of thousands of homeowner complaints.”

The Inspector General concluded that between October 1, 2011, and November 30, 2012, more than 34,000 escalated cases were filed by homeowners with Freddie Mac and its eight largest mortgage servicers.  Although current FHFA guidelines require these complaints to be resolved within 30 days of receipt, more than 20% were not resolved within that timeframe.

Current FHFA guidelines also require mortgage servicers to report the escalated cases they receive to Freddie Mac on a monthly basis.  The Inspector General found that four of Freddie Mac’s largest mortgage servicers—including Bank of America, CitiMortgage, Provident, and Wells Fargo—“did not report any escalated cases to Freddie Mac despite handling more than 20,000 such cases.”

The Inspector General also found that no penalties have been imposed on servicers for their failure to handle escalated cases in a manner compliant with current FHFA guidelines.

Ranking Member Cummings also sent a letter to Chairman Darrell Issa requesting that the Committee hold a hearing with Edward DeMarco, the Acting FHFA Director, and Steve A. Linick, the Inspector General of FHFA. Cummings requested that the Committee also invite representatives from Bank of America, CitiMortgage, Provident, and Wells Fargo – the mortgage servicers singled out by the Inspector General’s report as completely disregarding FHFA’s requirements to report monthly on the escalated cases they receive.

Cummings has called for new leadership at FHFA and encouraged President Obama to nominate a permanent, Senate-confirmed candidate to replace DeMarco.


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One Response to “Cummings Calls for Hearing with Banks And FHFA’s DeMarco re: Complaints alleging improper foreclosures and fraudulent servicing practices.”

  1. papergate says:

    Not quite in line with the article but same vein – You know taxpayers pay into the state – the state pays for legal defense by a criminal – we pay for the scumbag drug pusher to get ‘legal representation’ paid by us – it seems there should be something that can be done to ‘freeze’ legal funds and defense given solely to criminals and instead direct that same legal to civil defense for a period of no less than 3 years – to provide legal counsel for homeowners – taxpayers – and constituents non-criminals – there is so much money put into criminal defense we pay for – let them sit and rot in jails for 3 years who cares – hell with their legal defense – and put all that legal support towards other citizens as well. In emergent times such as this, it seems a governor or whoever would be able to call a shot like this – shut down criminal defense and direct legal defense where truly needed – unless and until – defense is also made available to civil matters – if these same entities are not going to prosecute or hold accountable criminal conduct by the financial entities – then they need to support legal needs of the people of a state who are being wronged by criminal conduct going unchecked – let the criminals kill each other for 3 years – serves them right for being criminals in the first place . . . especially if law enforcement is going after the small minnows – who will need and get legal representation for smoking a joint – when they should have concentrated on the bigger crimes that have injured citizens – Lenny Breuer couldn’t sleep at night worrying about the implications if they brought down a big financial entity – that same degree of concern should be regarded by not acting – in denying legal assistance to millions of homeowners in each state is the same as allowing them to be hurt by those they won’t prosecute – you’d think concern should also cause one “not to be able to sleep at night” – even more so.

    Bottom line: take away legal defense from criminals who get 3 squares/roof over their heads/place to sleep for free – and use those same legal resources for a period of time to resolve legal issues with other citizens dealing with criminals – so what if a murdered has to sit around a jail cell for longer than he/she wanted to bad – free up this legal help towards ones who really need it – if only for a year or two. If the powers that be are scared to prosecute the financial criminals then at least allow for defense for those that are victims of the financial criminals . . .then bill them for it – then there will be funds for criminals in a few years . . . so we can provide free legal defense for the financial elite who will end up needing it . . .


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