These problems have included critical weaknesses in mortgage servicers’ foreclosure governance processes, foreclosure document preparation processes, and oversight and monitoring of third-party law firms and other vendors. Collectively, these problems have hampered the ability of the courts and the markets to work through the foreclosure inventory in an efficient manner.
In this context banks and insurance companies are sometimes portrayed as a part of the old economy whereas venture capital firms are mentioned as a driving force for a new economy. It is my opinion, however, that this division between old and new is rather artificial.