Thousands of financial companies can expect increased attention from federal regulators in the coming months as the newly created Consumer Financial Protection Bureau (CFPB) ramps up its efforts to oversee every type of consumer credit-related practice, including such things as mortgage and foreclosure document preparation procedures.
Formed last year in response to widespread fraud and financial scandals, the CFPB was given oversight and enforcement authority over America’s mortgage servicers and other financial institutions, including thousands of so-called “nonbank organizations” such as mortgage brokers and servicers, credit reporting agencies and payday loan companies. Until now, nonbank financial companies have operated with little or no federal oversight.
Among other things, the CFPB will be working to end practices such as “robo-signing,” which involved the systematic forging and improper notarization of countless thousands of documents filed in foreclosure proceedings.
As many companies work to strengthen their document processing practices, risk managers and policy makers are recognizing the value of making sure Notary-employees and their supervisors are fully trained to follow proper notarial procedure.