The U.S. Senate Committee on Banking, Housing and Urban Affairs’ Ranking Member, Senator Elizabeth Warren, sent a letter to the independent nationwide monitor of the 2012 National Mortgage Settlement requesting records on second mortgages that were extinguished under the settlement, following reporting that debt collectors are seeking to foreclose on thousands of homeowners using allegedly cancelled “zombie” second mortgages. The letter highlights that Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. entered into the USD 25 billion National Mortgage Settlement with forty-nine state attorneys general and the federal government, with servicers forgiving over USD 15 billion of second mortgages and receiving settlement “credit” for those extinguishments. Warren cited cases where borrowers stopped receiving statements, received tax documents indicating cancellation, or saw loans removed from credit reports before later learning the second mortgage remained active, and raised concern that banks may have received settlement credit for extinguishing second mortgages while instead selling those loans to debt collectors. Warren requested records related to the extinguishment of second mortgages under the National Mortgage Settlement and other relevant settlements by January 7, 2026.

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