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Rep. Elijah Cummings Calls For Hearings On Suspicious Foreclosures

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Rep. Elijah Cummings (D-Md.) wants hearings to be held to find out whether federal regulators mishandled foreclosures.
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Rep. Elijah Cummings (D-Md.) wants hearings to be held to find out whether federal regulators mishandled foreclosures.

Maryland Congressman Elijah Cummings is calling for hearings to examine whether federal regulators put banks above homeowners in foreclosure dealings.

Cummings' staff has received confidential documents that they say show widespread abuse by federal regulators charged with protecting homeowners. The accusations range from forging documents to foreclosing people's homes when the mortgages weren't properly documented. Many of those forced out of their homes are low-income minorities.

The 16 lenders, including Wells Fargo and Bank of America, allowed independent investigators to examine their books, but the review was scrapped. Now Cummings, the top Democrat on the House Oversight Committee, wants its Republican chairman, Darrell Issa, to hold a hearing into the alleged abuse.

"Many of these companies have already admitted to fraudulently doing harm to the people that they were servicing," Cummings said. "Since these are government agencies that are making these decisions, there needs to be advice given—strong advice—that they must look out for the people who were harmed."

More than $3 billion eventually went to 3.7 million homeowners, but Cummings wonders if that number should be higher.

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