Republicans Question DOJ’s Choice of ‘Activist Groups’ in Bank Settlements

quote:

---

Republicans Question DOJ’s Choice of ‘Activist Groups’ in Bank Settlements
By Christina Rexrode
November 25, 2014

. . . . lawmakers are questioning how the Justice Department determined that the banks, as part of the settlements, be required to donate money to housing counseling agencies approved by the Department of Housing and Urban Development.

The groups are meant to help homeowners avoid foreclosure. But in a letter dated Tuesday and reviewed by The Wall Street Journal, Rep. Bob Goodlatte of Virginia and Rep. Jeb Hensarling of Texas describe some of the nonprofits, such as National Council of La Raza and NeighborWorks America, as left-wing “activist groups.”

In their letter, the lawmakers also point out that Bank of America and Citigroup get extra credit toward meeting their consumer-relief obligations when they donate to the housing groups: a $2 credit for every $1 donated. The banks get less credit for actions like forgiving mortgage principal for homeowners who owe more than their homes are worth.

“The settlements appear to serve as a vehicle for funding activist groups rather than as a means of securing relief for consumers actually harmed,” wrote Mr. Goodlatte, who is chairman of the House Judiciary Committee, and Mr. Hensarling, who is chairman of the House Financial Services Committee.

LINK

---