Mortgage Compliance Blog

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  • Dodd-Frank Regulatory Relief and Its Effect on Your HMDA Operations

    May 23, 2018, by Brian Arnesen
    On March 22, 2018, the House of Representatives passed Senate Bill S.2155 commonly referred to as Dodd-Frank Regulatory Relief. While there are many areas of the bill that provide all financial institutions a reason to rejoice, we want to recap what this bill specifically means for HMDA purposes and our customers.

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  • Analysis of the 2017 HMDA Data

    May 15, 2018, by Brian Arnesen
    According to the 2017 HMDA data, the number of reporting institutions declined by 13% from 2016 to 5,852. Part of the reason less institutions reported HMDA data was the increase of the reporting threshold made to Regulation C. In 2017, there were 12.1 million home loan applications, which resulted in 7.3 million loan originations, and 2.1 million in purchased loans.

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  • A Look at the Loan Origination Process

    Apr 30, 2018, by Brian Arnesen
    While regulations often have good intentions for consumers, they have noticeably begun to hamstring financial institutions and create complexity for buyers. For example: “In 2006, the average loan file had 302 pages. Now, the average mortgage file is 806 pages,” according to the This is just a small indicator of how regulations have impacted loan origination. Let’s take a look at the origination process and see why it costs so much to originate a loan.

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  • What a True Digital Mortgage Will Look like in the Future

    Apr 30, 2018, by Brian Arnesen
    Over the last decade, we’ve seen a tectonic shift in the mortgage industry as we transition to all things digital. A decade ago, the idea of getting a mortgage without stepping into a bank or credit union seemed absurd! Slowly but surely, more and more steps in the mortgage process have become digitalized, as email communication and secure document transfer become more widely accepted and trustworthy.

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

    Mar 30, 2018, by Brian Arnesen
    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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  • Should You Be Worried About Rising Debt-To-Income Ratios for Mortgages?

    Mar 29, 2018, by Tim Simpson
    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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  • 4 Lessons Learned From 2017 HMDA Submissions

    Mar 29, 2018, by Brian Arnesen
    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

    Mar 5, 2018, by Brian Arnesen
    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

    Mar 5, 2018, by Tim Simpson
    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

    Feb 16, 2018, by Brian Arnesen
    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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