House Democrat wants foreclosure abuse details

Reuters News
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Posted: Oct 27, 2011 3:18 PM

WASHINGTON (Reuters) - The top Democrat on a House oversight panel is calling on his Republican counterpart to subpoena copies of certain contracts used by mortgage servicing companies that might provide insight into past foreclosure abuses.

Maryland Democrat Elijah Cummings, a House Government Oversight Ranking member, is hoping to work cooperatively with the full committee in order to pressure federal regulators to disclose so-called engagement letters.

These engagement letters were used by the 14 largest mortgage-servicing companies and governed the contracts they had with consultants hired to review foreclosure actions.

Federal regulators came down on the mortgage-servicing industry last year after widespread problems were revealed showing many companies were wrongfully foreclosing on U.S. homeowners.

(Reporting by Margaret Chadbourn)