Baca Joins California Delegation in Urging Bank Investigations

Press Release

Baca Joins California Delegation in Urging Bank Investigations

Today, Congressman Joe Baca (D-Rialto) joined with his fellow Members of the California Democratic Congressional Delegation (CDCD) to send a letter to Attorney General Holder, Federal Reserve Chair Bernanke, and Comptroller of the Currency Dugan requesting investigations into systemic wrongdoing by financial institutions in their handling of delinquent mortgages, mortgage modifications, and foreclosures.

Over the past year, Rep. Baca has received hundreds of complaints from his constituents, which appear to outline a clear pattern of misconduct on the part of lenders and servicers. Recent press accounts have also reinforced the view that these institutions are routinely failing to respond in a timely manner, misplacing requested documents, and misleading both borrowers and the government about loan modifications, forbearances, and other housing related applications.

"It's clear that even after promising to work with borrowers, and receiving government incentives to do so, too many financial institutions are still stringing the American people along," said Rep. Baca. "After reviewing many complaints from my constituents here in the Inland Empire, it is evident that these are not isolated incidents, but represent a dangerous pattern of misconduct and obstruction. I am proud to work with my California colleagues as we call for greater financial oversight and regulation into these shady dealings on the part of some major financial players."

Today's letter builds on Rep. Baca's record of working to protect distressed homeowners during the home foreclosure and loan modification process. Last week, Rep. Baca introduced legislation to assist struggling homeowners seeking loan modifications through the often complex Home Affordable Modification Program (HAMP). The Office of the Homeowner Advocate Act of 2010 (H.R. 6304) creates an independent office to assist homeowners, housing counselors, and attorneys in resolving problems with HAMP, and give homeowners a greater level of control over the loan modification application process.

"Too many American families have fallen victim to the predatory lending practices that dominated much of the home mortgage market," concluded Rep. Baca. "Congress and the current administration have taken concrete steps to help struggling families keep their homes. But we must have the necessary follow through to ensure the initiatives we have put in place are working efficiently and effectively. My legislation can help to lower the number of foreclosures, and serve as an important step in the right direction to ensure the HAMP program is operating in the most beneficial manner possible."

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