DeLauro Calls on Republicans to Investigate Illegal Bank Foreclosures on Military Families

Washington, DC— Congresswoman Rosa DeLauro (CT-3), Ranking Member on the Labor, Health, and Human Services Appropriations Subcommittee, and 39 House of Representatives colleagues sent a letter to Congressman Spencer Bachus (AL-6), Chairman of the House Committee on Financial Services, today calling for a hearing on the mishandling mortgages of active-duty military families.

Last week, the financial services firm JP Morgan Chase was found to have wrongly foreclosed on the homes of 14 active-service military families and overcharged thousands more on their mortgages. A direct violation of the Servicemembers Civil Relief Act, which prevents active-duty military families' homes from being foreclosed upon, this part of a growing number of improper foreclosure practices, including "robo-signing" and forging documents, found to have occurred at major financial institutions throughout the country.

The text of the letter is below.

January 31, 2011

The Honorable Spencer Bachus Chairman Committee on Financial Services 2129 Rayburn House Office Building Washington, D.C. 20515

Dear Chairman Bachus:

Like us, we are sure you were deeply disturbed to learn that JPMorgan Chase violated the Servicemembers Civil Relief Act by wrongly foreclosing on 14 military families and overcharging more than 4,000 active-duty military members on their mortgages. As Chairman of the Committee with jurisdiction over all issues pertaining to banking and housing, we urge you to use all the tools at your disposal to fully investigate the actions of financial institutions in dealing with mortgages and foreclosures of members of the military.

In November of last year, the Subcommittee on Housing and Community Opportunity held a hearing on "Robo-Signing, Chain of Title, Loss Mitigation, and Other Issues in Mortgage Servicing" to examine foreclosure practices of JPMorgan Chase and other banks. We support these efforts and believe that hearings on bank foreclosure practices should continue in the 112th Congress to ensure that we are protecting American families.

In that spirit, we believe a hearing on the mishandling of mortgages of active-duty military families, including an examination of whether the improper actions of JPMorgan Chase extend to other financial institutions as well, is critical. Improper actions on the part of banks and financial lenders like JPMorgan Chase, Ally Financial, and Bank of America are something that we have witnessed with increasing frequency with practices such as "robo-signing," signing foreclosure forms without even reading them, and even forging documents outright. Unfortunately, it seems that these financial institutions are trying to maintain their bottom line at the expense of American families. We therefore strongly urge you to use your oversight responsibilities to hold JPMorgan Chase and other institutions accountable for their practices.

Thank you for your prompt attention to this critical matter. We look forward to working with you.

Sincerely,

ROSA L. DeLAURO Member of Congress