Sen. Richard Shelby (R-Ala.) has criticized a proposal by the 50 state attorneys general and federal agencies that would require mortgage servicers to contribute $30 billion that may be used for fund housing programs as part of settlement for past foreclosure and loan modification practices. Also, Republicans in the House of Representatives have told Timothy Geithner, the Treasury secretary, that the draft proposal raises “significant concerns” about its impact on the financial system.
