GAO: CFPB, Regulators Must Add to Mortgage Oversight
The GAO found that while authorities had the right to examine foreclosure activities, those activities were not looked into.
May 17, 2011
The U.S. Government Accountability Office (GAO) last week called on the developing Consumer Financial Protection Bureau (CFPB) and fellow regulators to create plans for mortgage servicer oversight. With the recent news of loan and foreclosure documentation issues, the focus on foreclosure-related activities has increased. As a result, the GAO was tasked with studying past, current, and future oversight plans.
The GAO found that while authorities had the right to examine foreclosure activities, those activities were not looked into, as regulators did not believe that foreclosure practices posed a risk to safety and soundness. The report suggests that federal regulators “develop and coordinate plans to provide ongoing oversight and establish clear goals, roles, and timelines for overseeing mortgage servicers under their respective jurisdiction.”
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