Along with new mortgage rules issued by The Consumer Financial Protection Bureau Thursday, a local lawmaker is proposing his own legislation to protect homeowners and taxpayers.
U.S. Sen. Sherrod Brown (D-Ohio) is introducing legislation that would prevent banks from foreclosing on mortgages in the process of modification. The bill will also make sure the banks don't deduct any of the $8.5 million settlement on their taxes.
"Because taxpayers are subsidizing these banks that have made mistakes or oil companies who have made mistakes and should be responsible for mistakes," says Brown.
Carla Martin, who has been fighting foreclosure since 2009, thinks more protection is needed from the start. Her mortgage ended up in the hands of Bank of America, but when she signed mortgage papers, her deal was with another lender.
"I don't see why we don't have any choice whether our loan is sold or even notified that it's going to be sold," says Martin.
Many homeowners who were wrongfully foreclosed upon are calling for criminal charges to be filed against these big bank executives.
Brown says they should definitely be held liable or that banks should pay fines for illegal activity.