Survey Reveals Mortgage Lenders’ Top Regulatory Concerns

So what are the top regulatory concerns on mortgage executives’ minds these days?

According to QuestSoft’s 10th annual compliance survey, released earlier this month, the new reporting requirements under the Home Mortgage Disclosure Act (HMDA) are now the number one concern for mortgage lenders, with 68% ranking the new rules as a “high concern” and an additional 27% highlighting them a “medium concern.”

The Consumer Financial Protection Bureau’s (CFPB) new TILA-RESPA Integrated Disclosures (TRID) rule is second on the list – this despite the fact that TRID-related closing delays seem to have abated.

More than 400 lenders responded to the survey.

“As in years past, lenders have continued to rank upcoming compliance deadlines with the utmost concern, especially in the months leading up to the implementation date,” says Leonard Ryan, founder and president of QuestSoft, in a release.

Regarding the finding that TRID remains a concern, six months after implementation, Ryan says, “We have never seen the survey reflect anywhere near this level of high anxiety six months after a regulation’s initial implementation date.”

He adds that he believes lenders and their investors will continue to struggle with TRID until the regulatory guidance and enforcement environment provides more clarity. Only 9% of lenders currently see the initiative as a low concern.

Following HMDA and TRID, the next highest area of distress among lenders surveyed was Fair Lending examinations, with 32% citing the exams as a high concern.

Increased Community Reinvestment Act (CRA) exam scrutiny and vendor management round out the top five concerns, with 26% and 18% of lenders citing these as high areas of compliance concern.


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