WASHINGTON– Senator Charles E. Schumer (D-N.Y.) announced that he'll conduct a hearing next week to look into whether mortgage lenders are taking unfair advantage of borrowers in foreclosure who have declared bankruptcy.
Schumer, chairman of the Senate Judiciary Committee's Subcommittee on Oversight and the Courts, said he favored legislation to protect borrowers from abusive practices and excessive fees. The meeting will be held on May 6 and witnesses will include several borrowers who have been forced from their homes who were not delinquent. A representative from the U.S. Trustee's Office will also appear. Katherine M. Porter, an associate professor at Iowa University and author of a study on the practices of lenders in bankruptcy proceedings that showed excessive fees were added to more than half the total foreclosures studied (1,733), may also provide testimony.
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