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House Financial Services Ranking Member Maxine Waters, D-Calif., is pressing bank regulators for information on the "abrupt" end of the independent foreclosure review process and the tentative $8.5 billion settlement announced over mortgage servicing abuses.

Waters, writing Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry, said "many questions remain about why the IFR was cancelled, how your agencies went about replacing it with a negotiated settlement, and how the 4.4 million estimated eligible universe of borrowers will be evaluated for harm and compensated."

With regard to any final settlement agreement, Waters urged that:

• the Fed and OCCinsist that an independent monitor be established to follow remediation efforts;
• demographic and other data be collected and publicly reported as it relates to the distribution of direct payments and indirect relief under the proposed settlement;
• indirect reliefprovide for a minimum amount of remediation though principal reductions and that waivers of deficiency judgments not be used;
• the agencies, if they rely on the IFR remediation matrix as the basis for compensation, accept the recommendations of consumer groups regarding payment priorities;
• an escalation process be available to homeowners to address concerns about payments made;
• the Fed and OCCmake preventing avoidable foreclosures for subject borrowers be made a priority.

Waters also posed questions about the transparency of the IFR and the proposed settlement. See full details in her letter.

• Waters' letter to Bernanke, Curry, 1/31