Cummings requests copies of banks’ engagement letters from federal regulators

“After reviewing only a sampling of the banks’ files, the federal regulators found systemic problems, illegal foreclosures, and inflated fees,” Cummings said in a letter sent Tuesday. “I’m worried that this is only the tip of the iceberg.”

The investigations are supposed to determine any financial injury to borrowers caused by errors, misrepresentations or other deficiencies, and to fix those problems. 

“There has been a lot of concern with the idea of letting the banks hire their own private consultants to police themselves,” Cummings said. “The regulators say they are approving these agreements and holding banks accountable — we want to make sure.”