Mortgage Compliance Blog

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  • Should You Be Worried About Rising Debt-To-Income Ratios for Mortgages?

    Mar 29, 2018, by User Not Found
    Debt-to-income (DTI) ratios have long been used in the lending industry to determine a borrower’s ability to repay. In an analysis of 100 recent loans that have PMI, QuestSoft Verifications found that 41% of them had DTIs over 45%, and an incredible 11% had DTIs over 49%. This highlights a massive number of borrowers who are strapped for cash & “house heavy.”

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  • 4 Lessons Learned From 2017 HMDA Submissions

    Mar 29, 2018, by Brian Arnesen
    Every year, thousands of institutions submit their HMDA data to the CFPB. While many errors can be fixed by scrubbing your data on a regularly basis, there are always a few surprises during submission time. With a new CFPB HMDA submission platform, 2017 submissions were challenging. In fact, QuestSoft facilitated 70% more HMDA submissions this year.

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  • 6 Common CRA Assessment Area Mistakes to Avoid

    Mar 5, 2018, by Brian Arnesen
    One of the most important factors in a CRA exam is your assessment area. Your assessment area will dictate the performance standards you are measured against. Assessment areas can be optimized in a number of different ways, but there are 6 common mistakes you must avoid in order to pass your CRA exam and obtain a good rating.

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  • 3 Reasons Manual VOE's Are Here to Stay

    Mar 5, 2018, by User Not Found
    In recent years we’ve seen the rise of websites & applications that can automatically verify employment & income for lenders across the country. These programs are integrated with an employer’s HR records, and allow lenders to obtain an instant snapshot of the employee’s details & earnings. These are great tools, that have helped slash precious time off of originations. However, while the reach of these companies is growing, automated verifications will never be able to capture the entirety of the market. Here’s why:

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  • The CFPB’s 3 New Goals and What They Mean for Your Institution

    Feb 16, 2018, by Brian Arnesen
    On February 12th, CFPB director Mick Mulvaney released his strategic plan for the next four years. The plan was composed of three main goals that outlined exactly how the CFPB would be conducting itself over the next four years.

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  • 7 Issues Reported with the New CFPB HMDA Platform and Tools

    Jan 31, 2018, by Brian Arnesen
    With the new HMDA rules in effect and the new CFPB HMDA Platform now accepting 2017 submissions, growing pains and hiccups are to be expected. The CFPB recently said that it would not assess penalties for errors in data collected in 2018 and it recognized that there were significant operational challenges needed to meet the requirements under the rule.

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  • Mulvaney Takes the CFPB in a New Direction

    Jan 29, 2018, by Brian Arnesen
    On January 23, 2018, CFPB Director Mick Mulvaney sent out a memo to all staff at the CFPB that redefined the mission and purpose of the agency. That memo, which was leaked and published by ProPublica, stated that the CFPB would cease being a regulator that “pushed the envelope” through its enforcement actions and would instead serve everyone it works for.

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  • 3 Popular Ways Borrowers Falsify Income and Employment

    Jan 23, 2018, by User Not Found
    We’ve come a long way since the 2008 financial crisis. The phenomena of NINJA and stated income loans has died off. The current state of mind for every mortgage investor is VERIFY, VERIFY, VERIFY! People want to know exactly what they’re invested in, and verifying income & assets is an extremely important part of that.

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  • What Do Tax Season and HMDA Reporting Have in Common?

    Jan 23, 2018, by Brian Arnesen
    The short answer is everyone waits until the last minute to submit their files. For example, “In 2015, 21.5 million Americans or 1 in 7 filers waited until the last week before the deadline to file their tax returns,” according to the IRS. Historically (based on our volume of support calls) a large percentage of HMDA filers also wait to submit their HMDA data until the last two weeks of February.

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  • Why Your CRA Story Matters

    Dec 29, 2017, by Brian Arnesen
    Whether you are a large bank with assets of $1 billion or a small bank, your Community Reinvestment Act (CRA) story matters. All state member and nonmember banks, national banks, and saving associations that meet or exceed the asset size thresholds as defined by the FFIEC for both of the last two calendar years are subject to the data collection and reporting requirements of the Community Reinvestment Act. Even if you’re not a submitting bank, you still need to perform under the Act.

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