Today, Speaker of the House Nancy Pelosi and 31 House Democrats also from California sent a letter expressing their concerns about the possible mishandling of delinquent mortgages, mortgage modifications, and foreclosures by certain financial institutions. The letter, addressed to Attorney General Eric Holder, Chairman of the FED Ben Bernanke and Acting Comptroller of Currency John Walsh, calls for the heads of their respective agencies to “to investigate possible violations of law or regulations by financial institutions” in their handling of foreclosures. The letter follows recent statements by Fannie Mae and Freddie Mac expressing concerns about the actions of loan servicers in the administration of foreclosure cases.
The letter, citing an “apparent pattern” reported by constituents leads the member of congress to conclude that the problems are no longer likely isolated incidence and that, “recent reports that Ally Financial (formerly GMAC) and JP Morgan may have approved thousands of unwarranted foreclosures only amplify our concerns that systemic problems exist in the ways many financial institutions have dealt with homeowners who are seeking to avoid foreclosures."
The letter goes on, citing supporting documentation, to state that “it appears that banks have repeatedly misled and obstructed homeowners from receiving the help Congress and the Administration have sought to provide.”