WASHINGTON — Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, requested a hearing Tuesday over the abrupt ending of the troubled independent foreclosure review last month.
Regulators halted the IFR when they announced an $8.5 billion settlement in January with ten major banks. Waters and other Democratic lawmakers wrote letters to regulators last week requesting more information about the review process and the decision to settle.
Now the California Democrat is requesting a hearing before the banking panel to further explore concerns about the deal with regulators from the Office of the Comptroller of the Currency, the Federal Reserve Board and the Government Accountability Office.
"There are many unresolved questions concerning how the settlement will be implemented, including the types of remediation available, and how the direct payments and indirect relief will flow to harmed borrowers," Waters said in a letter to Rep. Jeb Hensarling, R-Texas, chairman of the committee. "Given these outstanding questions, it is imperative that both the OCC and the Board testify before the committee to describe their reasons for cancelling the IFR and explain how they anticipate structuring this hurriedly-crafted settlement. Additionally, it is essential that the committee hear from the GAO — the office that was engaged in an ongoing investigation of the IFR at the time it was cancelled by regulators."