Compliance-related issues are among the biggest concerns mortgage bankers have about lending activity this year, according to a new survey.
Nearly three-quarters of home lenders see compliance with mortgage regulations as having the biggest impact on their originations during 2016.
More than 40 percent are most focused on the Consumer Financial Protection Bureau’s
TILA-RESPA Integrated Disclosure rule, or TRID.
The findings were based on the Lenders One Mortgage Barometer, an online survey of 200 randomly selected
mortgage lenders conducted on behalf of Altisource Portfolio Solutions S.A.-subsidiary Lenders One Mortgage Cooperative.
Less than a quarter of surveyed lenders are most concerned about the
Home Mortgage Disclosure Act, and just 14 percent cited CFPB audits as the compliance-related area on which they are most focused.
When it comes to loans that don’t meet standards for Qualified Mortgages, less than two-thirds of the mortgage bankers in the study originate such loans.
The pool of non-QM originators gets shallow when it comes to frequent users
— with under a fifth frequently originating residential loans that don’t fall within QM requirements.
Just half of the lenders that did indicate they originate non-QM loans said they are at least very likely to originate them in 2016.
Interest rates are also heavily factoring in to
this year’s outlook, with more than two-thirds of those surveyed citing rates as having the biggest impact on the mortgage lending business in 2016.
In
order to be more competitive this year, more than three-quarters of home lenders believe that they will need to improve their quality of customer service.
But loan turnaround is also an important factor, with more than 70 percent indicating that they will need to improve the time from origination to closing.
