GOP has more questions for CFPB on mortgage settlement

{mosads}Specifically, they argue that no law gives “political appointees” like CFPB architect Elizabeth Warren the ability to participate in such enforcement matters.

They ask for any documents or communications created by CFPB officials tied to settlement talks. They also request any communications between Warren and the Office of White House Counsel on the settlement talks.

They take particular issue with a recommendation that servicers be levied $20 billion to fund a principal reduction fund, based on a CFPB claim that servicers saved over that amount by cutting corners.

They warned that such a fund would encourage homeowners to default and could worsen the housing crisis. They ask for any CFPB research on the impact of mortgage principal reductions on the housing market, as well as data that yielded the estimate on how much companies saved by underinvesting in mortgage servicing.

Warren defended the bureau when she appeared before the House Financial Services Committee in April, saying CFPB officials we “proud” to assist other agencies in ongoing settlement talks. Challenged by several Republicans about her role in the talks, she said the agency had hired several experts in mortgage servicing, which made it a valid resource for other agencies to tap.

Signing on to the letter were Reps. Scott Garrett (R-N.J.), Randy Neugebauer (R-Texas), Shelley Moore Capito (R-W.Va.) and Patrick McHenry (R-N.C.). All are members of the House Financial Services Committee