Democrats call for broader investigation into banks’ foreclosure processes

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Democrats call for broader investigation into banks’ foreclosure processes

The Hill – Congressional Democrats are urging the Obama administration and a House panel to conduct a more thorough investigation into big banks’ foreclosure practices.

Sen. Sherrod Brown (D-Ohio) and Rep. Brad Miller (D-N.C.) along with several other advocates on Monday said a proposed settlement of upward of $25 billion between federal and state governments and the nation’s five largest banks is wholly inadequate and ambiguous as to which homeowners it will help.

The banks have a “longstanding ugly pattern of homeowner abuse,” Brown said during a conference call with reporters.

“We’re urging the Obama administration to stand with homeowners to fight for meaningful settlement,” he said. “No one is above the law.”

Meanwhile, Maryland Democrat Elijah Cummings, ranking member of the House Oversight and Government Reform Committee, sent a letter to Chairman Darrell Issa (R-Calif.) asking him to bring high-ranking executives from the nation’s biggest mortgage banks to Capitol Hill testify about foreclosure abuses.

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