Robo-signing Scandal Reveals Inadequate Oversight, Need for Plans for Future Supervision, GAO Says
May 12, 2011
The Government Accountability Office says the Consumer Financial Protection Bureau and other federal regulators should include foreclosure practices in their anticipated national servicing standards, as well as a formal assessment of the risks that are associated with poor documentation practices the exact repercussions of which are still undetermined. The new GAO report was sparked by widespread criticism of mortgage servicers handling of foreclosure documents. It was believed that many affidavits had been improperly notarized or signed, leading to concerns over how these loans were transferred into...