Waters Requests Fed and OCC to Ensure that Settlement with Mortgage Servicers Provides Fair Compensation for Borrowers
Congresswoman Maxine Waters, ranking member of the House Financial Services Committee, today released a letter to Ben Bernanke, chairman of the Federal Reserve, and Thomas Curry, comptroller of the currency, asking for detailed information about the abrupt termination of the Independent Foreclosure Review (IFR) process.
Ranking Member Waters, a leading advocate for foreclosure prevention, has closely monitored the IFR process since its inception in early 2011. Designed to investigate abuses by mortgage servicers, the IFR process abruptly came to an end on Jan. 7th when the Office of the Comptroller of the Currency and the Federal Reserve reached a tentative $8.5 billion settlement with ten mortgage servicing companies.
Because the details of the final settlement are still being negotiated, Congresswoman Waters requested that it contain specific provisions including a minimum amount for principal reductions, an escalation process for homeowners, and the prevention of foreclosures for the 4.4 million eligible borrowers who are still in their homes. She also requested that the settlement provide for greater transparency, tighter oversight, and the collection of detailed data.