The Consumer Financial Protection Bureau is seeking comment on a set of proposed rules designed to implement a wide range of consumer protections in the wake of the recent National Mortgage Settlement and the “robo-signing” foreclosure abuses it uncovered.
While the proposed rules do not specifically address the improper notarization and document-signing practices that came to be known as “robo-signing,” the federal agency says the rules are a direct result of the foreclosure crisis and will affect how mortgage servicers do business. The proposed rules also represent the latest development in the ongoing effort to expand and solidify the reforms that emerged from the foreclosure crisis.
Members of the public have until October 9 to comment on the rules.
In general, the proposals would create new rules under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) that include extensive recordkeeping requirements as well as mandates to offer consumers alternatives to foreclosure.
Michael Lewis is Managing Editor at the National Notary Association.