Watchdog faults OCC review in robo-signing crisis
WASHINGTON (MarketWatch) – Examination procedures at the national bank regulator between 2008 and 2010 were insufficient to identify “significant” weaknesses with foreclosure documentation and processing that were part of the so-called “robo-signing” crisis, the Treasury Department’s inspector general said in a report released Friday. During the three-year period, the Office of the Comptroller of the Currency, which regulates national banks, did not consider foreclosure documentation and processing to be an area of “significant risk” and did not focus examination resources on the area, the watchdog said. The practice at big banks of assigning bank employees to rapidly approve numerous foreclosures with only cursory glances at the glut of paperwork to determine if all the documents are in order became known as “robo-signing.”
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.