Lawmakers Expected To Put The Squeeze On Mortgage Servicers At Today's House Hearing; Frank Rattles Saber Saying Rewrite Of Industry Laws On Horizon

CNNMoney reports:

• U.S. House lawmakers are expected to put heavy pressure on mortgage-servicing firms at a Wednesday hearing, even as financial firms seek to show they are taking more aggressive steps to help struggling borrowers. "We're ready to say that next year we will have to rewrite the servicer laws," House Financial Services Chairman Barney Frank, D-Mass., said Tuesday.

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• Lawmakers have been increasingly disappointed that financial firms have only half-heartedly embraced efforts to stem the record numbers of foreclosures that have been a major cause of the global financial crisis.

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• Servicers have long complained that the contracts and laws governing loan- servicing agreements have prevented them from more aggressively modifying the terms of loans. The situation is frustrating to Frank, who said the system cannot work if all of the interested parties are prevented from making a decision on a loan because of existing laws.

For more, see Mortgage Servicers To Face Scrutiny From US House Wednesday.

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