Wolters Kluwer conducted a recent survey among mortgage lenders that focused on compliance issues for 2023 including whether they have confidence they are in compliance and how they feel about the digital tools they’re using as it relates to compliance. The results show that a majority either do not believe, or are unsure if, they are in compliance for 2023, even among those using digital tools. Here’s what the 122 mortgage lending representatives had to say about compliance at their companies in 2023.
A vast majority are concerned they aren’t in compliance.
Only 15% of respondents believe they are in compliance for 2023, with 85% saying they believe they are either not in compliance or are unsure whether they are in compliance this year. Among the 85%, almost a quarter (24%) say document filing requirements are the biggest concern, followed by post-closing document management at 21%, compliance document generation at 20%, loan origination at 14% and closing process at 7%.
When asked why six out of 10 lenders have said in a previous study, they believe they are either not in compliance or are unsure if they are in compliance for 2023 regulations, 38% believe it’s because they are not properly leveraging the tools that they have, and over a third (36%) of respondents believe it’s because it’s too difficult to keep up with regulations.
Lenders recognize they need updated tools and processes to address multiple regulatory concerns.
When asked what they need to accomplish or solve for in order to get in compliance in 2023, almost 40% believe they need to have updated processes and almost a third (32%) of respondents said they need new tools. Just under 14% said that staff training will bring them into compliance this year.
Among the primary areas of compliance regulations, they are most concerned about for 2023, almost 60% selected lien releases and county recording regulations as their top choice, and almost 50% listed these areas as a concern: CRA, fair lending, HMDA reporting and RESPA reporting. Less than 10% were concerned about TRID regulations.
A majority of lenders are unsure about compliance with their digital tools.
Almost a third of respondents said they are compliant with the digital lending tools they’ve adopted over the last several years, with 70% saying they are either unsure or believe they are not in compliance with their digital tools.
Among respondents who believe they are compliant with the digital tools they are using, a majority (63%) said they are confident they are in compliance with their remote notary digital tools, 48% are confident they are compliant with eSignature, 44% are confident their eVaults are compliant, and 30% believe their digital closing tools are compliant.
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