When I started working at HousingWire in 2013, regulatory concerns sucked all the air out of the room for those in the mortgage industry. What seemed like relatively small changes to an outsider like me took years — years! — for lenders and servicers to implement.
It was a few years before I really understood how complex the mortgage process is and how hard it was for companies with manual processes to comply with the new regs. I remember talking to a VP at one regional lender who had a whole team of people trying to transfer loan information that was stored on paper files to something that could be reviewed remotely by regulators. Automating processes was the bitter pill the industry had to swallow over and over again, but that automation has also paved the way for many of the efficiencies and innovations we have in the mortgage process today.
I was reminded of all this today when I read the article by Senior Mortgage Reporter Georgia Kromrei on a survey by Wolters Kluwer Compliance Solutions. The report found that lenders have high levels of regulatory concern, particularly around fair lending and CRA reform.
But the stat that stood out to me was this finding: "The vast majority of respondents, 87%, still use manual processes or spreadsheets at least some of the time for their compliance management efforts. Few respondents anticipated much acceleration around artificial intelligence, robotics or automation of regulatory change management."
Wow. Even after all this time? Let me know if that rings true for you by dropping a note to swheeler@housingwire.com.
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