As the terms of the National Mortgage Settlement begin to be implemented at the nation’s five largest mortgage servicers, federal and state regulators are looking to draw more companies into the settlement and levy fresh fines against a number of lenders.
The Federal Reserve has announced that it expects to levy fines against eight additional financial institutions over “robo-signing” issues, and government officials recently indicated that they are looking to expand the agreement’s terms to even more companies in the mortgage servicing industry.
The Fed has already imposed $766.5 million in fines against five companies, including four signatories to the National Mortgage Settlement. The agency is also requiring all the financial institutions to draft and implement action plans to correct “unsafe and unsound practices in their mortgage loan servicing and processing.”
A U.S. District Court in Washington, D.C. recently approved the $25 billion settlement — a sweeping agreement between federal agencies, 49 state Attorneys General and five major financial institutions to rectify the improper notarization and document processing practices that led to the “robo-signing” crisis.
In the wake of the settlement, various court actions and other enforcement efforts, many companies are ensuring that their Notary employees and supervisors are trained in proper notarial procedure.
Michael Lewis is Managing Editor at the National Notary Association.