Congressman Cummings calls for hearing on mortgage servicing complaints

Congressman Cummings calls for hearing on mortgage servicing complaints

In a letter to Chairman Darrel Issa, Congressman Elijah Cummings requested that the Committee hold a hearing with current acting Federal Housing Finance Agency Director Ed DeMarco and the Inspector General of the FHFA Steve Linick.

This request comes after a new report issued by Linick’s office warned that mortgage companies that service Freddie Mac-backed loans failed to implement requirements to resolve escalated cases of “serious homeowner complaints alleging abuses such as improper foreclosures and fraudulent servicing practices.”

Cummings noted that the report is the latest in what he sees is a string of failures by FHFA leadership to protect American homeowners.

He wrote, “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.”

Cummings asked that representatives from Bank of America ($12.56 -0.01%)CitiMortgage  ($45.23 0%)Provident andWells Fargo  ($37.20 0.06%) also be invited to the hearing. These mortgage servicers were spotlighted by the Inspector General’s report as failing to report monthly on the escalated cases they receive.

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