Most lenders believe new regulations have had “significant” impact on their business, according to the Third Quarter Mortgage Lender Sentiment Survey of senior mortgage executives conducted by Fannie Mae.

In particular, lenders reported a nearly 30% median increase in compliance costs compared with 2013. Lenders also reported increased reliance on outsourcing due to increased regulations and associated costs, particularly in relation to post-closing Quality Control review and servicing.

Moreover, compliance risk is reported by most lenders as their top area of focus this year. In fact, it's one of four reasons mortgage lenders aren't lending.

The mortgage industry has faced several significant regulatory changes in recent years.

The Office of the Comptroller of the Currency, the Consumer Finance Protection Bureau, the Federal Reserve, and the Federal Deposit Insurance Corporation all  issued new rules and regulations that affect the mortgage industry.

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Source: Fannie Mae

Given the large amount of discussion in the mortgage industry about increased regulations, Fannie Mae’s Economic and Strategic Research Group surveyed senior mortgage executives in August 2014 via its quarterly Mortgage Lender Sentiment Survey to understand how lenders view the impact of new regulations on their business practices.