Mortgage Servicer Abuses Were Long Ignored

If you learn anything from following regulatory failures that hurt consumers it is this: Most of these failures have happened before and alarm bells have been sounded, only to be ignored. Such is the case with mortgage servicing abuses, which have emerged in recent months as a major focus on state and federal investigations. 

In 1989, when mortgage servicing was still a relatively new industry, the General Accounting Office undertook the first-ever government study of mortgage servicers. The findings of the report won't be surprising to anyone who has been following the news in the past year: Mortgage servicers tended to cut corners to boost profits. 

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1989 GAO Report on Mortgage Servicing Abuses