California Democratic Members Call for Investigation into FHFA Official's Lobbying Efforts

Statement

Members of the California Democratic Congressional Delegation referred a letter from the Federal Housing Finance Agency (FHFA) General Counsel Alfred Pollard to the FHFA Inspector General, Department of Justice and Government Accountability Office. The letter from Mr. Pollard, which apparently was unsolicited, was sent to the California State Legislative Conference Committee and discusses his concerns with provisions in the Homeowners Bill of Rights. The letter, which can be viewed by clicking here, largely takes its substance from the talking points of the banking and mortgage industry. Lobbying on behalf of private industry is not an authorized activity for an independent federal regulatory agency.

The Members state, "To the best of our knowledge, the letter was not requested by the Conference Committee, questions the needs for states to enact laws seeking to assist homeowners at risk of foreclosure, and contradicts the FHFA's statutory mission of protecting the public interest."

The Members noted that, "significant portions of the 'Foreclosure Delays' section appear to be copied and pasted directly from testimony you gave at an Oversight and Government Reform Committee field hearing in New York in March...[yet] there are significant differences between New York and California foreclosure laws...This raises the question of whether your concern about efforts to mitigate foreclosures is specific to California law, or whether you are ideologically opposed to foreclosure mitigation in general."

Click here to link to the letter (the text is also pasted below), which was signed by the following Representatives (in alphabetical order): Joe Baca, Susan Davis, Anna G. Eshoo, Sam Farr, Janice Hahn, Mike Honda, Zoe Lofgren, Doris Matsui, George Miller, Laura Richardson, Pete Stark, Mike Thompson, Maxine Waters, Lynn Woolsey

Source