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  • 3 Ways To Use Your HMDA Data

    by Brian Arnesen | Nov 30, 2017
    Digging through the data yourself can often be tedious if you do not know what you are looking for. However, there are tools such as QuestSoft’s Market Data module that can extrapolate the information from the HMDA data for insights into an institution’s performance and allow institutions to improve their lending performance.
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  • [Q&A] How Will a New CFPB Director Affect Compliance?

    by Brian Arnesen | Nov 28, 2017
    With the upcoming change in leadership, we decided to have QuestSoft President Leonard Ryan and QuestSoft Vice President of Support and Training Carey Aimone weigh in on how a new director could affect the future of compliance and regulations.
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  • How Blockchain Can Be Used For Compliance

    by Brian Arnesen | Nov 01, 2017
    Blockchain has the potential to impact many different industries. The financial services industry is ripe for innovation and is of great interest to enthusiasts for the adoption of blockchain. Blockchain technology can affect how compliance departments, quality control and many other departments operate. Blockchain technology can also help mortgage lenders save money by streamlining workflows and creating a better customer experience, while reducing risk.
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  • How to Create An Exceptional Compliance Program

    by Brian Arnesen | Oct 24, 2017
    HousingWire recently reported that Wells Fargo has appointed a new chief compliance officer to transform their compliance into an “industry-leading” program. This comes after multiple accusations of harmful business practices emerging over the past few years, including accusations of “forcing mortgage applicants to pay unwarranted fees” (Washington Post). This alone would make anyone even remotely familiar with TRID furrow their brow. So, what does it take to make an exceptional compliance program? Well, it all starts at the top.
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  • Analysis Of The 2016 CFPB HMDA Data

    by Brian Arnesen | Oct 16, 2017
    Every year, HMDA loan data is made public on all reporting institutions. This data is used by public groups, agencies and businesses to assess mortgage lending and develop better ways of doing business. By analyzing the data, businesses can extrapolate trends and issues across the mortgage industry.
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  • QuestSoft Updates CFPB HMDA Testing Database To Ensure HMDA Readiness

    by Brian Arnesen | Oct 02, 2017
    This week, QuestSoft will be releasing the latest Compliance RELIEF update to enable customers to live test their 2018 data against the 215 new validity error codes and 42 new quality checks—three months ahead of the implementation deadline of January 1st. These new error codes have no ties to historical codes, allowing lenders to start with a “clean slate” and adjust to new standards and conditions throughout their operations.
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  • How The CFPB Is Addressing HMDA Privacy Concerns

    by Brian Arnesen | Sep 26, 2017
    The CFPB recently addressed how it planned handle the privacy concerns of its new HMDA reporting and collection requirements. The number of submitted fields is nearly tripling, and these fields must be stored by both financial institutions and the CFPB. With the recent security breaches at Equifax and the SEC, the privacy and security of this expanded dataset is a major concern.
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  • What Is Alternative Data And How Is It Being Used For Loans?

    by Brian Arnesen | Sep 22, 2017
    The CFPB just issued a no-action letter to Upstart Network, an online lending platform, which uses alternative data to make credit and pricing decisions. This means the CFPB will not take legal action against the company for actions that are not technically legal, but are acceptable as long as Upstart provides certain information to the CFPB regarding the loan applications it receives, how it decides which loans to approve and how it will mitigate risk to consumers. The CFPB wants to study how alternative data can be used to better serve the credit needs of underserved populations.
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  • How The New CFPB 2018 HMDA Rules Will Affect Fair Lending Examinations

    by Brian Arnesen | Aug 31, 2017
    The CFPB has stated that fair lending enforcement is a priority and has issued more than $45 million dollars in remediation since 2016 for violations. Institutions that are able to take advantage of the new HMDA data expansion will not only have smoother examinations, but will also be able to make data-backed business decisions.
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  • When Will Banks Use AI For Compliance?

    by Brian Arnesen | Aug 21, 2017
    Artificial Intelligence (AI) and automation are common buzzwords used these days. With new advancements in technology many people are asking the question “When will humans be replaced by automation and AI?” “The largest banks, including JPMorgan and HSBC, have doubled the number of people they employ to handle compliance and regulation. Compliance now costs the banking industry $270 billion a year and accounts for 10% of operating costs,” according to The Financial Times[CA1] . As the cost of compliance continues to rise, financial institutions are looking for new technology to solve their business needs. With the popularity of electronic mortgages, it is logical to assume that automated compliance software should already be part of a compliance management system; but AI can take it one step further.
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  • The CRA Examination Process Explained

    by Brian Arnesen | Aug 08, 2017
    There are 3 phases to an examination: 1. Pre-examination Planning: Examiners gather information from the FDIC records and contact the institution to request specific information and documents. 2. Review and Analysis: Examiners evaluate an organization’s compliance management system and its effectiveness. They will analyze any weaknesses and violations. Examiners will also assess risk to consumers based on a bank’s practices. 3. Communicating Findings: Examiners will discuss their findings with management and provide a Report of Examination that documents both the strengths and weaknesses of a bank’s CMS.
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  • Explained: What Is Geocoding And What Do Banks Use It For?

    by Brian Arnesen | Jul 25, 2017
    Geocoding takes addresses or descriptions of locations and turns them into a specific location on the earth’s surface. Through this process we can gather demographic data about these specific locations. While geocoding is used by many industries for various purposes, the mortgage industry uses geocoding to submit a variety of accurate data to government regulators.
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  • How The “Quest” To Innovate The Financial Services Industry Does Not Always Work

    by Brian Arnesen | Jun 27, 2017
    The mortgage industry has been slow to change over the past decade. Besides adapting to new regulations, financial institutions have not had to change the fundamental way in which they operate for many years. However, in 2015 Rocket Mortgage was launched. Quicken Loans, who developed Rocket Mortgage, touts it as “The first completely online mortgage experience…” It allows prospective home buyers to complete mortgage applications online in 5 minutes or less
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  • 3 Common Errors To Avoid With Mortgage Call Reports

    by Brian Arnesen | Jun 19, 2017
    In 2008, the SAFE Act was created to require all state mortgage licensees to submit a report of loan activity and financial condition to the NMLS. Thus, the beloved Mortgage Call Report was created. Companies that hold a state license or state registration through NMLS (Nationwide Mortgage Licensing System) are required to complete a Mortgage Call Report (MCR). The NMLS provides a FAQ page to answer many questions about MCR’s.
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  • Is Your Vendor Ready For The New CFPB HMDA 2018 Changes?

    by Brian Arnesen | Jun 07, 2017
    With only a short time left until the new CFPB HMDA regulations go into effect, many loan origination software (LOS) vendors are touting their readiness to support the regulation's enhanced data requirement. But it wasn't that long ago that we heard the same thing concerning TRID.
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  • How The New HMDA 2018 Rules Increase Risk For Fines

    by Brian Arnesen | Jun 07, 2017
    In 2017, more lenders will be subjected to HMDA. Under the new rules, the CFPB estimates that there would be a 40% percent increase in the total number of transactions under the new data collection and submission requirement
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