House Committees Seek Truth on Mortgage Servicing Negotiations

Two House committees expressed concerns about Consumer Financial Protection Bureau transparency in a letter sent to Treasury Secretary Timothy Geithner last week. Specifically, the committees request documents regarding the ongoing mortgage settlement negotiations that involve coordination between the CFPB and State Attorneys General.

For several months, members of the two committees have sought answers as to the extent of the CFPB’s role in the mortgage settlement negotiations.

“As we have expressed in previous correspondence with you and in hearings before our respective committees, we remain concerned that transparency and accountability be given the highest priority throughout the government, especially in an agency as powerful and important as the Consumer Financial Protection Bureau,” the members of Congress write in the letter.

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Public interest group Judicial Watch recently uncovered emails, meeting minutes and other documentation to show CFPB has been “heavily” involved in the negotiations, according to the House Financial Services Committee.

When asked about the CFPB’s involvement during a March subcommittee hearing, special advisor Elizabeth Warren replied that the bureau provided advice when asked, the Committee said.

“It appears that the CFPB has been deeply involved in the mortgage servicing settlement negotiations and that its role goes far beyond the mere offering of ‘advice,’” the letter states.

The bureau, scheduled to take effect in one month on July 21, is still without a director.

View the letter from the two House committees.

Written by Elizabeth Ecker

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  • Ms. Warren has proven herself a true bureaucrat.  But has she walked into a trap?  Will the current “investigation” find a smoking gun?
     
    Will House Republicans successfully block her appointment?  There is no guarantee Ms. Warren would be the worst Director but because this law and the bureau in particular are is “her babies,” she seems to be a “marked woman.”  While there are a lot of good ideas backing the creation of the bureau, this kind of alleged opaque conduct is exactly what plays into the hands of its detractors.  No doubt if Ms. Warren had not played “the small” and transparent bureau concept with the public, her credibility would be much better.
     
    Will Ms. Warren be appointed?  Her responses under oath and this “investigation” are not helping her ultimate chances.

  • Ms. Warren has proven herself a true bureaucrat.  But has she walked into a trap?  Will the current “investigation” find a smoking gun?
     
    Will House Republicans successfully block her appointment?  There is no guarantee Ms. Warren would be the worst Director but because this law and the bureau in particular are is “her babies,” she seems to be a “marked woman.”  While there are a lot of good ideas backing the creation of the bureau, this kind of alleged opaque conduct is exactly what plays into the hands of its detractors.  No doubt if Ms. Warren had not played “the small” and transparent bureau concept with the public, her credibility would be much better.
     
    Will Ms. Warren be appointed?  Her responses under oath and this “investigation” are not helping her ultimate chances.

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