As one of the top administrative officials of the Obama White House, Elizabeth Warren stated Thursday that she questions the government’s rush to settle with banks over wrongful foreclosures.
Warren told a congressional panel that the government agencies may have not thoroughly investigated allegations that borrowers’ homes were illegally seized by the nation’s top mortgage lenders.
Foreclosure attorneys can represent people who believe their homes have been wrongfully foreclosed and possibly keep them in their homes.
“I think there is a real question about whether there’s been an adequate investigation,” said Warren. She is the temporary custodian of the Bureau of Consumer Financial Protection, an agency set up to protect buyers from abusive lenders. She is the first senior official to openly question the thoroughness of the probes into the banks questionable practices.
The nation’s five largest lenders are close to reaching a financial agreement with the government to settle accusations that they abused homeowners and used illegal practices to foreclose on homes. The banking industry is estimated to have gained $20 since the beginning of the housing crisis by reduced spending on foreclosure processing. This has driven millions of homeowners to foreclosure lawyers seeking assistance.
The five largest banks could settle with federal government to the tune of about $30 billion dollars. But Warren believes this may not be enough.
Foreclosures have plagued the housing market, which has been slow to recover. If a person is facing foreclosure they should seek the advice of a foreclosure attorney.
