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.

Click to enlarge

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.

Most Popular Articles

HomeStreet Bank fined for kickbacks to real estate agents, homebuilders

The FDIC announced Wednesday that it reached a settlement with HomeStreet Bank after an investigation found that HomeStreet had paid kickbacks to real estate agents and homebuilders in exchange for their mortgage business.

Nov 06, 2019 By

Latest Articles

Offerpad will let buyers customize their homes before they move in

Arizona-based iBuyer Offerpad recently announced its latest feature, one that allows homebuyers to customize their homes before moving in. According to company, consumers, upon selecting an available listing through the company’s app or website, will be able to select and visualize customization options.

Nov 11, 2019 By