JAN 31, 2013 1:12pm ET

Elizabeth Warren Seeks Regulator Documents on Foreclosure Accord

JAN 31, 2013 1:12pm ET
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Sen. Elizabeth Warren and Rep. Elijah Cummings have asked banking regulators to produce documents to show what was behind this month’s settlements with 13 mortgage servicers for faulty foreclosures.

“It is critical that the OCC and the Federal Reserve disclose additional information about the scope of the harms found to establish confidence in the sufficiency and integrity of the settlement,” the two Democratic lawmakers wrote in a letter to Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry dated today.

Warren and Cummings are seeking documents that outline the scope of harm to borrowers in the foreclosure missteps of 2009 and 2010, and for demographic details about the borrowers. They are also asking for information on the performance and pay of independent consultants that the regulators ordered the servicers to hire in 2011 to review the foreclosures.

Warren, of Massachusetts, was a special adviser to President Obama who set up the Consumer Financial Protection Bureau. Cummings, of Maryland, had criticized the settlement plan before it was announced, and said that it could allow “banks to skirt what they owe and sweep past abuses under the rug.”

The lawmakers are asking that the documents be delivered by Feb. 22.