Most lenders face significant mortgage compliance challenges

"A survey of more than 2,000 lending, banking, auto finance and fintech professionals including mortgage technology providers, originators, banks and credit unions found that two-thirds of organizations face loan payment discrepancies on at least a monthly basis often due to miscalculated fees, interest rate errors or data entry mistakes. Nearly half of respondents said compliance problems like inaccurate APRs or outdated disclosures had already led to rework, audit issues or legal risk, while 44% reported low confidence in their current systems."

"There was really, really poor confidence in everybody's existing systems to actually do things the right way, which is shocking, Tim Yalich, vice president of business development at Carleton, said in an interview with HousingWire. There clearly is a tremendous amount of struggle to manage change. Across all respondents, regulatory change management remains a major challenge, with only one-third reporting that they can adapt within a month."

"Nearly one-quarter take three months or more, citing complex regulations, loan calculation updates and vendor coordination as top hurdles. Complex loan structures add to the strain as 31% said tiered rates and variable payments cause frequent errors and delays. Another 17% called them a constant problem while only 14% felt their tools handle these scenarios well. Compliance updates also drain efficiency."

More than 2,000 lending, banking, auto finance and fintech professionals report that two-thirds of organizations experience loan payment discrepancies at least monthly, often from miscalculated fees, interest-rate errors, or data-entry mistakes. Nearly half say compliance problems such as inaccurate APRs or outdated disclosures have already caused rework, audit issues, or legal risk, and 44% report low confidence in current systems. Regulatory change management is a major challenge: only one-third can adapt within a month while nearly one-quarter take three months or more. Complex loan structures, manual paperwork and spreadsheet reliance exacerbate errors, delays and productivity strains.

Read at www.housingwire.com