WASHINGTON — Democratic lawmakers raised numerous concerns Wednesday over the mortgage servicer settlement announced in January, including how banks are credited for relief they provide to borrowers.

The Senate Banking subcommittee held the hearing to further examine whether the settlement, struck after regulators halted the troubled independent foreclosure review, goes far enough in relieving borrowers impacted by illegal foreclosure activity. Lawmakers expressed particular concern over a provision in the settlement that allows servicers to credit the entire unpaid balance of a mortgage when providing assistance such as principal write-downs, mortgage modifications or short sales. The settlement requires the servicers to provide roughly $5.5 billion in assistance to borrowers.

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