Regulatory compliance in mortgage banking has always been a challenge for lenders and servicers. Yet, today’s volatile environment may prove to be the most demanding in modern times especially when examining activities touching a consumer. And, like walking a tight rope in a hurricane, how does a company balance prudent and proactive regulatory compliance with the need for creative marketing and consumer outreach in originating residential mortgages?
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.