Senator Calls For Investigation Of Foreclosure Practices

Posted by Orb Staff on October 05, 2010 No Comments
Categories : Mortgage Servicing

Sen. Jeff Merkley, D-Ore., has sent a letter to U.S. Treasury Secretary Timothy Geithner and U.S. Secretary of Housing and Urban Development Shaun Donovan urging them to immediately launch an independent investigation into the foreclosure practices at Ally Financial and the nation's largest servicers.

Last week, Sen. Al Franken, D-Minn., asked six federal agencies to coordinate an investigation into Ally.

Merkley, a member of the Senate Banking Committee, also calls for all foreclosure proceedings by Ally Financial and other servicers with established problems to remain frozen until the loan servicers are found to follow proper protocol.

Last week, Ally Financial halted foreclosure proceedings in 23 states after it was discovered that thousands of foreclosure documents had not been properly reviewed. JPMorgan Chase and Bank of America have all followed suit and frozen all foreclosures until the matter is investigated.

SOURCE: Office of Sen. Jeff Merkley

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