The presidential election brought an end to a long period of uncertainty that caused market fluctuations and delayed business planning decisions as well as considerable speculation on what changes are in store. As we navigate the post-election landscape with the new administration, many questions remain uncertain for the mortgage banking and financial services industry.
For example and as a very brief snapshot of the changes this industry may encounter, the presidential platform proposed and could greatly change or amend Dodd-Frank for starters. Along with that comes the possibility of restructuring and scaling back the CFPB’s authority, potentially replacing the single director structure with a commission and maybe reducing its funding. Technology will be of concern. Companies whose business depends in part or substantially on data might see increased and imposed regulation. Amending HOEPA…looking at HMDA reporting…FHA mortgage insurance fees…GSE reform…all this and much more is being scrutinized to facilitate and effect change for mortgage, banking and credit union regulation or deregulation as the case may be.
The amendments and changes being discussed are sweeping and encompass the entire lending community. While policymakers on the hill decide on what that landscape may be, the lenders and third party providers will need ample time once again to prepare. They will need to adapt and update their LOS platforms as well their policies and procedures to conform and meet any new compliance requirements. Hundreds of thousands of hours in legal research, development and implementation over Dodd-Frank and the CFPB to deliver a worry free loan to the consumer will have to be reworked. All that said, the high priority of compliance and loan quality will and should remain even in the event of less stringent regulations. Continued focus on a compliant loan will mitigate risk and any undue scrutiny for fines or buy backs.
Despite all the unknowns and uncertainty to follow, there is one certain element a lender can and should rely on – their compliance partner. In addition to the immeasurable time it takes to be in compliance today, the lending community has also spent significant money and effort expanding compliance resources to their back office operations to accommodate the swell of regulations. It is imperative through these changing times that lending operations remain steadfast to and build a tighter connection with their compliance partner, their document preparation partner and their legal and compliance services partner. There is no better time like the present to improve the consumer experience and pursue innovative and cost effective methods with a unique offering of all components of the compliance spectrum. A partner that will monitor and make all necessary compliant documents, calculations, state or federal changes for the lender, worry free, speaks volumes of certainty in an uncertain time.