Oct 07 2010

Shelby Wants Foreclosure Probe

American Banker

Sen. Richard Shelby, the lead Republican on the Senate Banking Committee, called Wednesday for an investigation into improper foreclosure practices at banks.

"The federal banking regulators should immediately review the mortgage servicing and foreclosure activities of Ally Financial, JPMorgan Chase and Bank of America, Click for Enhanced Coverage Linking Searches" Shelby said in a press release. "The regulators should determine exactly what occurred at these institutions and make those findings available to the banking committee without delay."

House Speaker Nancy Pelosi and other senior Democrats called Tuesday for a government investigation into irregularities that have spurred a foreclosure freeze in 23 states. But Shelby is one of the most prominent Republicans to echo that request.

The Alabama Republican also went further, arguing that the banking committee should conduct its own investigation.

"It is the committee's fundamental responsibility to conduct oversight of the banking regulatory agencies and the firms under their jurisdiction. I am highly troubled that once again our federal regulators appear to be asleep at the switch," he said.