By Silla Brush - 10/06/10 03:11 PM EDT
House Speaker Nancy Pelosi (D-Calif.) and 30 California House Democrats urged the federal government to investigate financial firms for "possible violations of the law" in their foreclosure practices.
The letter is the latest effort by members of Congress to pressure banks and other lenders to adjust loan terms and avoid foreclosures that continue to mount across the country.
"It appears that banks have repeatedly misled and obstructed homeowners from receiving the help Congress and the administration have sought to provide," the lawmakers wrote in a letter to the Justice Department, Federal Reserve and Office of the Comptroller of the Currency. The Obama administration put $50 billion from the financial bailout toward helping the housing market and reducing foreclosures.
"We have heard numerous stories of financial institutions being uncooperative at best or misleading and acting in bad faith at worst," the members wrote. "It is time that banks are held accountable for their practices that have left too many homeowners without real help."
The letter was signed by: Pelosi, Zoe Lofgren, Joe Baca, Xavier Becerra, Howard Berman, Lois Capps, Judy Chu, Jim Costa, Anna Eshoo, Sam Farr, Bob Filner, John Garamendi, Jane Harman, Mike Honda, Barbara Lee, Doris Matsui, Jerry McNerney, George Miller, Grace Napolitano, Laura Richardson, Lucille Roybal-Allard, Linda Sanchez, Loretta Sanchez, Adam Schiff, Jackie Speier, Pete Stark, Maxine Waters, Diane Watson, Henry Waxman, Lynn Woolsey and Mike Thompson.