Tester keeps pressure on Bernanke to hold big banks accountable

Senator looks for ways to support housing market

(U.S. SENATE) – Senator Jon Tester is questioning Fed Chairman Ben Bernanke about the status of the nation’s housing market, looking for ways to get the market “out of a knot.”

During a Senate Banking Committee hearing today, Tester said some mortgage loan-servicers have exacerbated the problems facing the U.S. housing market.  Tester cited issues like the robo-signing of foreclosure documents and servicers selling mortgages that they never owned.

“The result has been, in my state, that some folks are being foreclosed on without good reason,” Tester told Bernanke.  “That kind of attitude is not healthy for our recovery and it’s not going to cut it.”

Tester, the only Senate Democrat who voted against the bailouts of Wall Street, the U.S auto industry and Greece, added that some banks that received bailout money to stabilize the market have in fact made the housing market worse.

Bernanke agreed with Tester that some loan-servicers have failed to contact consumers or fairly treat their customers.  Bernanke also said that servicers found to be in violation will be penalized.

“Folks shouldn’t have to call their Senator’s office to get results,” Tester said.  “I think you need to hold people accountable and if we can be helpful in that we will.”

As a member of the Senate Banking Committee Tester shaped the Wall Street Reform bill to make sure it was right for Montana and rural America.