Congresswoman Maxine Waters Letter to the Federal Reserve and the OCC Calling for an Investigation of Mortgage Servicers Who Benefitted by Misleading Borrowers Eligible for HAMP

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Congresswoman Maxine Waters, Ranking Member of the House Financial Services Committee, sent a letter to the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve (Fed) asking them to investigate how or whether these allegations against Bank of America interact with the Independent Foreclosure Review settlement reached between regulators and mortgage servicers in January 2013.

Congresswoman Maxine Waters, Ranking Member of the House Financial Services Committee, also sent a letter to Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), calling for an investigation of Bank of America or any other mortgage servicer, who allegedly benefitted by misleading borrowers eligible for the Home Affordable Modification Program (HAMP).

The letter notes that according to significant anecdotal evidence as well as a number of academic studies that “foreclosure is often the most profitable end result for a servicer that does not own the loan they are servicing.”

“Bank of America has received $992 million in Incentive Payments related to HAMP, making them the second largest beneficiary of such payments.” Ranking Member Waters writes. “While that figure pales in comparison to the other Troubled Asset Relief Program (TARP) funds that the bank has benefited from, I do think it represents a significant amount of assistance from taxpayer,” the letter continues.

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Published In: Business Torts Updates, Consumer Protection Updates, Criminal Law Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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