Loan servicing rules’ effectiveness questioned

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Lawmakers and mortgage servicers are criticizing a new plan to keep lenders from rushing homeowners into foreclosure. According to the New York Times, 14 servicers, including Wells Fargo and JPMorgan Chase, have promised the Office of the Comptroller of the Currency that they will change the way they deal with delinquent borrowers. House Democrats and consumer groups are concerned that these agreements, which could take effect in the next few days, won’t have the desired effect. Rep. Elijah Cummings, a Democrat who serves on the House Committee on Oversight and Government Reform, told the Times that he thinks regulators can come up with something better. The Democrats will introduce a new bill in the House today that would demand thorough homeowner evaluations and limits on foreclosure fees. [NYT]