Sen. Richard Blumenthal, D-Conn., has announced plans to launch a new investigation into mortgage servicing practices.
The investigation will be conducted through the Senate Judiciary Committee. Blumenthal will ask the nation's leading servicers to explain their current operational policies, as well as their procedures related to filing proofs of claim in the bankruptcy courts.
‘The rate of foreclosure and families that struggle with their mortgage payments is one of the single largest barriers to economic recovery that we still see today,’ says Blumenthal. ‘This investigation will ask the tough questions to bring about real changes to this broken system so that people can no longer be given the runaround when trying to stay in their homes.’