Politico-

The Consumer Financial Protection Bureau on Friday unveiled a much-anticipated proposal to better police the way banks and other lenders treat troubled borrowers facing the prospect of losing their homes.

The CFPB announcement is the government’s latest response to the so-called “robo-signing” scandal that emerged at the end of 2010 when allegations first surfaced that mortgage servicers, many of them large banks, were taking shortcuts when trying to quickly move borrowers through the foreclosure process.

The bureau’s proposal would set new standards for servicers whose job it is to collect monthly payments and manage the foreclosure process.

Under the proposed rules, clearer information would have to be provided to borrowers about their payments and servicers would be required to make sure a troubled homeowner is aware of all the options, such as loan modifications, to avoid a foreclosure.