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Congresswoman Waters Disappointed in Weak Regulator Action on Servicers

April 13, 2011
Press Release

Congresswoman Maxine Waters (D-Calif.), a senior member of the Financial Services Committee, released the following statement today:

"Today's announcement on enforcement actions against 10 of our nation's mortgage servicers by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve and the Office of Thrift Supervision is disappointing -- but not surprising -- given the history of our nation's banking regulators.  The consent orders released today, which are substantially similar to those leaked in the press earlier this week, fail to hold servicers accountable for the egregious, and often illegal, actions taken against American homeowners during the worst economic crisis since the Great Depression.  They are lacking in direction and standards, and all existing evidence points to the fact that our regulators' enforcement will be weak.  I fear that these consent orders are merely an attempt to do an end-run around our state attorneys general, and replicate the failed policy of preemption that exacerbated our subprime crisis and brought us to this point.  Though consumer groups, and 22 current and former members of the Federal Reserve's Consumer Advisory Council, pleaded with regulators to withdraw these consent decrees, they have nonetheless been issued.  Given that reality, I will continue to press regulators to strongly police servicer behavior and protect Americans threatened by foreclosure."