The Senate Banking Committee will take up post-election hearings on the emerging controversy about lenders' foreclosure practices.
Banking Committee Chairman Chris Dodd (D-Conn.) announced a hearing scheduled for Tuesday, Nov. 16 — two weeks after Election Day — to examine allegations into whether lenders are mishandling their mortgage services and foreclosure practices.
“American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud,” Dodd said in a statement. “I am deeply troubled by recent revelations and allegations of practices by some of the nation’s largest lenders. Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law.”
The hearing announcement comes after Bank of America announced it would temporarily halt foreclosures while it examines whether loan officers are adequately examining records before signing off on foreclosures.
The California congressional delegation, led by House Speaker Nancy Pelosi (D-Calif.), had pushed for a moratorium on foreclosures in that state.
President Obama weighed into the controversy earlier this week by issuing a pocket veto of legislation that would ease banks' ability to foreclose.