Over the last year several decisions and regulatory actions suggest industry standards are soon going to become the way of life for lenders. As many know, a jury found that Countrywide’s origination process was so flawed that it amounted to fraud, paving the way for the Department of Justice to pursue claims against Bank of America and certain executives for its rapid approval process. Recently, regulators have stepped up action against servicers experiencing fast growth to ensure that their infrastructure was sufficient to support such growth. Regulators are investigating whether the infrastructure is generally sufficient to support the volume of business in comparison to companies of similar size and volume. Practically, these actions suggest that as opposed to specific standards that must be met, a generalized standard of care is being developed. In other words, up to this point lenders had specific actions and goals that were required. A lender could compare its actions and performance to specific standards to determine its level of compliance. Click here to read the entire article.