Mortgage Default Information

Capitol Hill Hears Bank Foreclosure Flap

Investors Business Daily |

In Brief...

Lawmakers on Thursday hauled the top U.S. mortgage lenders and their regulators to Capitol Hill to chastise them for widespread flaws in foreclosure documents, but failed to extract any promises of fines or fresh loan modification programs.. "I want to know, given the problems in the mortgage servicing industry - problems which have been apparent for years - what government and industry witnesses intend to do to fix these problems and why any of them should keep their jobs," Maxine Waters, who chairs the House Financial Services housing subcommittee, said at the outset of the hearing.. Lawmakers threw most of their best jabs at regulators, who testified first, while a panel with bank executives, who were sworn in as witnesses by Waters, was sparsely attended.. Officials from the Federal Reserve and other bank regulators appeared ahead of executives from Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C) and Ally Financial.. "I think it's safe to say HAMP is not meeting its goal of preventing foreclosures," Waters said, referring to the $50 billion Home Affordable Modification Program from the $700 billion bank rescue package. Bank of America says it is ramping up modifications, but becoming more reliant on its own programs..

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