Banks have opened up a new front in their battle with homeowners over faulty foreclosures -- they are asking the Federal Reserve to water down homeowners' rights to put the kibosh on mortgages based on misstatements.
And time is of the essence in this battle. Banks hope to win the concessions before July 2011, when the newly formed Consumer Financial Protection Bureau takes over regulation of this issue. Banks fear the CFPB will be less sympathetic to their cause, according to Bloomberg, which reported on the matter yesterday.
"Anyone servicing loans is now pushing the Federal Reserve" to follow through on its Sept. 24 proposal to basically gut the rescission law before oversight moves to Elizabeth Warren's CFPB, said David Lykken, with consultant Mortgage Banking Solutions...
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