Alabama Republican Sen. Richard Shelby on Wednesday blasted efforts by federal and state officials to reach a settlement with mortgage servicers over botched foreclosures as a "regulatory shakedown" by the Obama administration that goes far beyond rectifying the damage caused to homeowners.
"This proposed settlement appears to be an attempt to advance the administration’s political agenda, rather than an effort to help homeowners who were harmed by a servicer’s actual conduct," Shelby said at a Senate Banking Committee hearing about the housing market.
Attorneys general from all 50 states and federal regulators are working to settle a broad investigation into problems in home foreclosures by leading mortgage servicers. Last week, officials from the states and the U.S. Justice Department, the Department of Housing and Urban Development, the Federal Trade Commission and the new Consumer Financial Protection Bureau presented the banks with 27 pages of demands for changes in mortgage servicing procedures.
The government officials also are pushing for financial penalties of $5 billion to $20 billion or more.
But Shelby said the attempt to help people harmed by botched paperwork and other foreclosure problems was being "hijacked" by some state and federal officials intent on circumventing Congress to provide more assistance to troubled homeowners.
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http://latimesblogs.latimes.com/money_co/2011/03/mortgage-foreclosure-settlement-paperwork-richard-shelby-elizabeth-warren-consumer-financial-protect.html
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