OCC Underestimated Robosigning Risk, Watchdog Says

Law360, New York (June 1, 2012, 3:51 PM EDT) -- The U.S. Department of the Treasury's internal watchdog on Thursday said that the Office of the Comptroller of the Currency's failure to monitor documentation practices at mortgage servicers helped contribute to the robosigning of documents and worsened the foreclosure crisis.

In its report, the Treasury Department's inspector general said that the OCC, which has supervisory authority for national banks, did not appropriately focus on problems with documentation or mortgage documents from 2008 through 2010. The regulator's examiners were also not attuned to the risks of securitization,...
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