Waters Responds to GAO Report - Calls the Independent Foreclosure Review Process “Flawed”
Plans to Introduce Legislation to Address the Use of Consultants
Congresswoman Maxine Waters, Ranking Member of the House Financial Services Committee, released the following statement today in response to a GAO report on the Independent Foreclosure Review. The study was conducted as the result of a request by Congresswoman Waters, Senator Robert Menendez, Congressman Brad Miller, and Congressman Luis Gutierrez, which was made to the GAO in January 2012. The report, titled Foreclosure Review: Lessons Learned Could Enhance Continuing Reviews and Activities Under Amended Consent Orders, was officially released by the GAO today.
Statement by Congresswoman Waters
The report confirms that the Independent Foreclosure Review process was poorly designed and executed. The GAO demonstrates that the projected error rates which were used to negotiate a settlement had little bearing in fact. The OCC should therefore retract the servicer error rates they previously submitted to Congress and the press. Moreover, the report confirms what I had long suspected – that the OCC’s oversight of the supposedly-independent consultants hired by the servicers was severely deficient. The report should serve as a wake-up call.