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Rep. Waters wants investigation into $8.5 billion foreclosure settlement

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The top Democrat on the House Financial Services Committee called Tuesday for Congress to "immediately" hold a hearing to investigate a controversial $8.5 billion foreclosure abuse settlement reached this year.

Rep. Maxine Waters (D-Calif.) said in a letter to Rep. Jeb Hensarling (R-Texas), the chairman of the committee, that she wanted bank regulators to explain what went wrong during a case-by-case review of foreclosed homes that ended "abruptly" earlier this year, why a cash settlement with the mortgage industry was reached instead, and what the deal means for struggling homeowners.

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