Theoretically, it is possible that the robo-signer controversy may turn out to be a short-term technical problem that can be addressed through additional verifications and, when necessary, re-processing of critical documents. Nevertheless, I believe that serious and sustained reform is needed to address the larger problems in mortgage servicing.
The mortgage servicing industry as we know it is a relatively recent invention, and, undoubtedly, it has never before been tested in a national housing crisis of this magnitude. As the continuing surge in foreclosures suggests, mortgage servicers simply are not doing enough to provide sustainable alternatives to foreclosure.