Compliance systems

Compliance software provider QuestSoft found that nearly one in five lenders is considering switching their loan origination systems this year.

There are many ways our industry can use mobile technologies. But if we don't do it, someone else will.

Wells Fargo's quality-control procedures will play a key role in a closely watched mortgage-fraud case that could go to trial this summer. Federal prosecutors are using the bank's internal reports to allege its executives knew about deficient loans.

The mortgage application and closing process is once again facing an overhaul. The Consumer Financial Protection Bureau will soon require lenders to provide customers with integrated disclosure forms, which aim to clarify costs associated with real estate transactions. As with any new process, the switch poses a number of challenges for lenders — and could even put business at risk during implementation. Here are five pitfalls to look out for in the process.

The technology, still in its early development stages, will analyze Home Mortgage Disclosure Act files prior to formal submission to the regulator so lenders can spot and fix errors faster.

If lenders can't get the Consumer Financial Protection Bureau to back off its Aug. 1 integrated mortgage disclosures deadline, they're at least hoping to get some leniency while they adjust to the new process.

Lending groups are demanding the Consumer Financial Protection Bureau take down its mortgage rate calculator, arguing it is providing misleading information to consumers.

Lloyd's of London and Bankers Insurance Service will now offer errors and omissions insurance for Litigation Guard, an online system which performs compliance checks for non-QM loans.

A recent Supreme Court decision means that one exemption to the Fair Labor Standards Act does not apply to mortgage salespeople, but their employers might still be able to take advantage of other exemptions.

Banks can expect to incur higher costs in several areas during the implementation of a settlement agreement to improve the accuracy of credit reports. But they might benefit in the long run by getting better information on borrowers.

The recent delay of new HECM rules is a reprieve for lenders scrambling to implement training and systems updates ahead of the original deadline. But it's also prompted questions about a key technology used by the reverse mortgage industry.

ClosingCorp, a resident real estate closing cost data and technology provider, has released Lumen Risk Management Suite, a group of services that help lenders manage the closing process.

The heightened regulatory environment for servicers has also prompted a wave of process improvements.

Mortgage technology firm ISGN has released its latest loan servicing system, LoanDynamix, which boasts a strong focus on compliance.

Consulting firm Teraverde Management Advisors has formed a new business unit to help clients grapple with their compliance requirements.

Mortgage document preparation vendor International Document Services has named its first chief executive.

The Qualified Mortgage rule, as well as increased scrutiny and more frequent auditing by regulatory agencies, has required lenders to embrace quality control to a far greater degree.

New disclosure rules from the Consumer Financial Protection Bureau don't go into effect until this summer, but lenders are already worried about compliance and fearing it may make the closing process far more difficult.

Consent decrees issued (and not issued) last week demonstrate how having appropriate compliance controls can and will make a major difference in any potential regulatory response.

The Fix-It Award recognizes technology that provides an effective and permanent solution to a specific industry problem, need or channel. Learn about this year's finalists and see who won the 2014 MT Award.