Senator Asks HUD for Fairbanks Probe

A key U.S. senator has asked the Department of Housing and Urban Development to investigate the business practices of Fairbanks Capital Corp., Salt Lake City, the nation's largest servicer of subprime mortgages.In a letter to HUD Inspector General Kenneth Donohue, Sen. Barbara Mikulski, D-Md., the ranking member of the VA-HUD appropriations subcommittee, said, "There are hundreds of complaints about this company from homebuyers all over the country, alleging that Fairbanks is scamming them out of thousands of dollars." In a prepared statement given to MortgageWire, Fairbanks president Bill Garland said, "It is Fairbanks' policy and practice to treat all borrowers fairly and consistent with its legal obligations. Fairbanks will certainly seek to address directly with Senator Mikulski and her staff any concerns the Senator may have about Fairbanks' servicing practices." (See the March 17 issue of National Mortgage News for full details.)