Warren Seeks Answers on ‘Zombie’ Second Mortgages
The Democratic senator wants to know if banks received credit under a national mortgage settlement for loans that were later sold to debt collectors.
Elizabeth Warren speaks during a rally outside the US Consumer Financial Protection Bureau headquarters in Washington, DC.
Photographer: Stefani Reynolds/BloombergSenator Elizabeth Warren, a Democrat from Massachusetts, requested records Tuesday on loans forgiven under a $25 billion national mortgage settlement. The agreement addressed foreclosure and other mortgage abuses by banks following the 2008 financial crisis.
Warren’s request to the official monitoring banks’ compliance with the settlement cited recent Bloomberg News stories that documented instances of homeowners getting blindsided by huge bills on long-forgotten second mortgages. In some cases, they had received tax documents showing the loans had been canceled years earlier.