Sen. Shelby demands Banking Committee investigation into robo-signers
Sen. Richard Shelby (R-Ala.), the ranking Republican on the Senate Committee on Banking, Housing, and Urban Development, has called for an investigation into recent foreclosure issues at major mortgage servicers. Ally Financial (GJM), JPMorgan Chase (JPM), and Bank of America (BAC) suspended foreclosures in 23 states after employees signed affidavits without verifying the documentation or having a notary present, now known as robo-signing. Shelby joins the long list of regulators, lawmakers and state attorneys general offices either launching investigations, demanding moratoria, or filing full-scale civil lawsuits against the servicers. "The regulators should determine exactly what occurred at these institutions and make those findings available to the Banking Committee without delay," Shelby said. He also pointed the finger at regulators who have, according to Shelby, "failed yet again to properly supervise" the banks. The Office of the Comptroller of the Currency has asked seven of the largest servicers to review their processes. But Shelby called for a separate investigation from the Banking Committee. "With the recent passage of the Dodd-Frank Act wherein the financial regulators were granted even broader powers, I am highly troubled that once again our federal regulators appear to be asleep at the switch," Shelby said. Write to Jon Prior.