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Mortgage Crisis Triggers Stronger Focus on Vendors

National Notary Association

Jonice Gray Tucker

The use of outside vendors by loan servicers is not new, but their role in default servicing and the adequacy of their work has drawn increasing regulatory scrutiny during the last two years. Work performed by Notaries has taken center stage, garnering particular attention in the context of mortgage servicing. To date, enforcement activities by state banking regulators and attorneys general have focused on the servicing practices of the very largest loan servicers, but these entities have also pursued direct actions against a bevy of third-party service providers for their alleged inappropriate actions s during the foreclosure process.

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