A survey conducted on mortgage banking technology executives found that 41 percent are not prepared for integrated disclosures.
New mortgage disclosures required by the Truth in Lending Act and the Real Estate Settlement Procedures Act go into effect on Aug. 1.
The Good Faith Estimate and HUD-1 Settlement Statement
are being replaced with a Loan Estimate and Closing Disclosure.
Capsilon Corp. issued the results of a survey it conducted at the Mortgage Bankers Association’s National Technology in Mortgage Banking Conference and Expo 2015 two weeks ago in Orlando, Fla.
In addition to conference attendees, online surveys were conducted the week after the convention. In all, more than a hundred executives participated.
According to the report,
41 percent of lenders said that are not prepared for the August deadline.
Just 12 percent of those surveyed indicated that they were “very prepared” to meet the deadline.
Increased regulatory requirements are expected by four-out-of-five executives to drive up loan production costs. A fifth expected a significant increase in loan production costs.
More than two-thirds of the executives said they have already
hired additional in-house staff or are utilizing outsourcing to handle compliance-related activities.
Capsilon Chief Executive Officer
Sanjeev Malaney blamed a lack of the “right technology” for rising compliance costs tied to increased staffing expense.
Technology spending appears to be increasing at a brisk rate, with 82 percent of respondents indicating they plan to spend “significantly more” or “somewhat more” on technology in 2015 than last year.
