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.

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.

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.

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.

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

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.

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.

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