Congressional Hearing Looks into Wells Fargo Predatory Lending

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Despite her state's best efforts, Raskin said, there has been a growing
epidemic of foreclosures, overwhelming remedial efforts. "In the past
12 months, over 100,000 Notices of Intent to Foreclose have been sent
to Maryland borrowers and to our office," she said.

Ominously, the state commissioner pointed to a new mortgage
epidemic as business elements take advantage of new programs and try to
get around regulatory measures: "Today, we see another mortgage storm
brewing in the area of loss-mitigation consulting. Historically, we
confronted fraudulent foreclosure transactions where title was conveyed
as part of a scheme to strip homeowners of their equity. Today, with no
equity left to strip, the ripoffs have become fee-based with so-called
consultants charging high up-front fees to vulnerable consumers to help
them get a loan modification."

It is hoped that the Obama administration's new financial
regulatory reform plan and consumer protection agency will address
these issues.

Raskin called for new laws that would allow states to regulate
national banks operating in their jurisdiction along with eliminating
the "federal preemption of the application of the state consumer
protection laws to national banks."

Joe Sims is the publisher of PoliticalAffairs.net and writes for the People's Weekly World, www.pww.org

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