National Mortgage Servicing Standards Likely Under Dodd-Frank

By Kyle Chezum Updated on 12/21/2010

12/21/2010

Policymakers, academics, and citizens alike are recommending that regulators draft a set of national mortgage servicing standards.  These official standards would ensure that the needs of borrowers are protected from unscrupulous or inefficient mortgage servicing practices.

Mortgage servicers, companies that collect mortgage payments from consumers and distribute the funds to investors, have faced public scrutiny and even contempt in the wake of the housing crisis.  Many homeowners facing foreclosure have been unable to receive aid of any kind, and other homeowners not facing foreclosure have been at times wrongfully evicted.  Activists have put pressure on regulators to implement a new set of standards under the recent Dodd-Frank Act that would keep a tighter rein on the actions of mortgage servicers.

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