US Lawmaker Asks Administration To Investigate Mortgage Lenders

(Dow Jones)–Sen. Jeff Merkley (D., Ore.) on Monday urged the Obama administration to start an independent investigation of Ally Financial and other servicers of home mortgages after the discovery that many foreclosure documents had not been properly reviewed.

“I urge you to jointly appoint an independent investigator to examine the foreclosure actions at the major loan servicers,” said Merkley, a member of the Banking, Housing and Urban Affairs Committee, in letters to Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan.