For lenders struggling to keep up with compliance regulations in an ever-changing mortgage environment, the evolution of creative loan products and multiple levels of predatory lending regulations bring numerous challenges. With an eye toward effective due diligence, many residential mortgage lenders have been searching for simple, cost-effective tools to assist them in avoiding inaccurate disclosure — and noncompliance.
Internet-savvy lenders and due diligence providers have long known that the web offers the potential to provide an effective, cost-efficient technology-based solution. An online method for accurately producing disclosures required by the Truth-in-Lending Act, for instance, offers great promise for lenders hoping to eliminate portfolio risk and ensure compliance…yet the problem has not been widely addressed by mortgage technology companies.
Any technology-based solution must focus on the complexities of current regulations and at the same time simplify the process for lenders, while also addressing the issues of accuracy, flexibility and ease-of-use.