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    • regulation

    12 Ways the Dodd-Frank Reform Bill May Affect Your Institution

    by Brian Arnesen | Mar 30, 2018
    On Wednesday, March 15th, the Senate passed the Dodd-Frank Reform Bill. While the bill must still be passed by the House and signed by the president, it is expected to pass.It's important to note that the bill may change as it goes through the House. The biggest takeaway from the bill is that institutions will still be required to report HMDA and CRA data to regulators.

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    • Debt to income ratios

    Should You Be Worried About Rising Debt-To-Income Ratios for Mortgages?

    by Tim Simpson | Mar 29, 2018
    Debt-to-income (DTI) ratios have long been used in the lending industry to determine a borrower’s ability to repay. In an analysis of 100 recent loans that have PMI, QuestSoft Verifications found that 41% of them had DTIs over 45%, and an incredible 11% had DTIs over 49%. This highlights a massive number of borrowers who are strapped for cash & “house heavy.”

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    • HMDA lessons

    4 Lessons Learned From 2017 HMDA Submissions

    by Brian Arnesen | Mar 29, 2018
    Every year, thousands of institutions submit their HMDA data to the CFPB. While many errors can be fixed by scrubbing your data on a regularly basis, there are always a few surprises during submission time. With a new CFPB HMDA submission platform, 2017 submissions were challenging. In fact, QuestSoft facilitated 70% more HMDA submissions this year.

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    6 Common CRA Assessment Area Mistakes to Avoid

    by Brian Arnesen | Mar 05, 2018
    One of the most important factors in a CRA exam is your assessment area. Your assessment area will dictate the performance standards you are measured against. Assessment areas can be optimized in a number of different ways, but there are 6 common mistakes you must avoid in order to pass your CRA exam and obtain a good rating.

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    3 Reasons Manual VOE's Are Here to Stay

    by Tim Simpson | Mar 05, 2018
    In recent years we’ve seen the rise of websites & applications that can automatically verify employment & income for lenders across the country. These programs are integrated with an employer’s HR records, and allow lenders to obtain an instant snapshot of the employee’s details & earnings. These are great tools, that have helped slash precious time off of originations. However, while the reach of these companies is growing, automated verifications will never be able to capture the entirety of the market. Here’s why:

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    The CFPB’s 3 New Goals and What They Mean for Your Institution

    by Brian Arnesen | Feb 16, 2018
    On February 12th, CFPB director Mick Mulvaney released his strategic plan for the next four years. The plan was composed of three main goals that outlined exactly how the CFPB would be conducting itself over the next four years.

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    7 Issues Reported with the New CFPB HMDA Platform and Tools

    by Brian Arnesen | Jan 31, 2018
    With the new HMDA rules in effect and the new CFPB HMDA Platform now accepting 2017 submissions, growing pains and hiccups are to be expected. The CFPB recently said that it would not assess penalties for errors in data collected in 2018 and it recognized that there were significant operational challenges needed to meet the requirements under the rule.

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    Mulvaney Takes the CFPB in a New Direction

    by Brian Arnesen | Jan 29, 2018
    On January 23, 2018, CFPB Director Mick Mulvaney sent out a memo to all staff at the CFPB that redefined the mission and purpose of the agency. That memo, which was leaked and published by ProPublica, stated that the CFPB would cease being a regulator that “pushed the envelope” through its enforcement actions and would instead serve everyone it works for.

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    3 Popular Ways Borrowers Falsify Income and Employment

    by Tim Simpson | Jan 23, 2018
    We’ve come a long way since the 2008 financial crisis. The phenomena of NINJA and stated income loans has died off. The current state of mind for every mortgage investor is VERIFY, VERIFY, VERIFY! People want to know exactly what they’re invested in, and verifying income & assets is an extremely important part of that.

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    What Do Tax Season and HMDA Reporting Have in Common?

    by Brian Arnesen | Jan 23, 2018
    The short answer is everyone waits until the last minute to submit their files. For example, “In 2015, 21.5 million Americans or 1 in 7 filers waited until the last week before the deadline to file their tax returns,” according to the IRS. Historically (based on our volume of support calls) a large percentage of HMDA filers also wait to submit their HMDA data until the last two weeks of February.

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