Justice to investigate foreclosure practices after call by Pelosi

[babylonsister]

Justice to investigate foreclosure practices after call by Pelosi
By Vicki Needham - 10/06/10 01:43 PM ET


The Justice Department will look into the foreclosure practices of financial institutions for possible violations.

Attorney General Eric Holder announced the probe at a Wednesday press conference. The announcement follows a letter from House Speaker Nancy Pelosi (D-Calif.) and 30 other California House Democrats calling for an investigation.

"We are aware of the charges that have surfaced in the newspapers in the last couple of days, and we're looking at them," Holder told reporters Wednesday.

Pelosi and the other lawmakers have charged that homeowners have been unable to obtain help such as loan modifications because banks never responded, lost paperwork and didn't provide straightforward information on what they needed to do to avoid foreclosure.

"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.

more...

http://thehill.com/blogs/on-the-money/banking-financial-institutions/122997-justice-investigating-foreclosure-problems-at-banks

[Cass]

1. Good, this is sorely needed.

Struggling homeowners really needed help and got the shaft instead by these greedy jerks. I hope this investigation will change how things are done.