Call to Regulators: Come Clean With Foreclosure Reviews

Several members of Congress are urging bank regulators to release the steps that mortgage servicers are taking to prevent illegal foreclosures.

The U.S. Comptroller has been investigating alleged shoddy foreclosure practices among mortgage servicers and is expected to review an estimated 4.5 million foreclosure files—an audit process expected to take a year.

“The only way this claims process will be fair is if the regulators shine a bright light on mortgage servicers, and make them demonstrate to the public how they’re being held accountable,” says Rep. Maxine Waters, D-Calif., who recently drafted a letter signed by 15 House members and sent to regulators urging more transparency. “To date, this entire exercise has been conducted in the shadows. I fear that without greater transparency, we’re setting home owners and foreclosed-upon families up for more disappointment.”

Last summer, several members of the House also had sent a letter to regulators asking for more information on how mortgage servicers were reforming their foreclosure practices. In the most recent letter, they renewed the urgency for for more information about the process.

Source: “Delegation Calls for Mortgage Servicer Reforms,” Housing Predictor (Nov. 1, 2011)