Revealing that the federal banking agencies have found significant “structural problems” in the mortgage servicing industry, Federal Reserve Board Gov. Dan Tarullo called Wednesday for the creation of national foreclosure standards.
While Tarullo said it should be left to Congress whether those standards would preempt state laws governing foreclosures, he said ongoing issues warrant the creation of some kind of federal rules.
“In light of the range of problems already encountered, and the prospect of further changes in the industry – including the possible migration of more servicing activity to non-banking organizations – it seems reasonable at least to consider whether a national set of standards for mortgage servicers may be warranted,” he said. [Continued]