You shouldn’t have to charge consumers just to be able to offer mortgages to more of them.
With industry regulations like TRID and upcoming rules like HMDA, lenders may be feeling the compliance crunch—which sounds like a breakfast cereal, but unfortunately it’s much more than that. This crunch amounts to some adverse results for lenders, especially community lenders.
Ash Patel, President and CEO of the Commercial Bank of California, said this in an article titled, “Community Banks Still Struggling with Compliance Costs:”
“While Bank of America might be able to absorb additional compliance costs without much impact, the additional rounds of paperwork and auditing associated with reactionary regulations such as 1975’s Home Mortgage Disclosure Act are far beyond what community banks can afford.
“As a result, thousands of smaller banks are either not lending or they’re passing the costs onto customers with higher interest rates . . .”
While these strategies may be a solution in the short-term, they will help smaller lenders if they cannot scale with the times. Mortgage bankers’ compliance processes and technology need to match the origination volume necessary for their businesses to be profitable. And they need to keep costs low for consumers or they may lose market share.
But how can a lender possibly increase mortgage origination volume if they are already struggling?
With ATS Secured.
We specialize in low-cost compliance solutions, so lenders can keep their fees competitive.
Just a few of our software features:
- Track document requests and signatures in real time, all in one place
- Audit-ready files for regulation purposes
- Send invoices/receive payments
- Bank account verification
- File disbursements
- Vendor management