Special Report: Document Services
Keeping Up With D.C.
288 words
24 August 2009
National Mortgage News
NMNW
13
Vol.33, No.46
English
(c) 2009 National Mortgage News and SourceMedia, Inc. All rights reserved.

New regulation is coming hot and heavy as a result of the mortgage meltdown. The mortgage industry has not proven its ability to regulate itself, so the politicians in Washington are stepping in. This presents a lot of challenges for document vendors that are working overtime to help their lender clients keep compliant.

The most talked about change is the coming RESPA adjustments expected early next year. Specifically, RESPA changes that take effect on Jan. 1, 2010 are such that HUD will require lenders to use a new good-faith estimate and revised HUD settlement statement documents when underwriting a mortgage.

According to Minneapolis-based compliance and risk management company Wolters Kluwer Financial Services these changes could present institutions with several operational issues.

Jason Marx, vice president and general manager of the mortgage division at Wolters Kluwer , said, "This has been and will continue to be a year of tremendous regulatory change for the mortgage lending industry."

"Any time you are trying to change the business with regulation I think it's important to have people within the industry involved in the process," added Scott Stucky, chief operating officer for Idaho Falls, Idaho-based document preparation vendor DocuTech.

"All industries are simple on the surface, but when it comes down to it, they are complicated under the covers. I think everyone in Washington is well intending, but may not know the real impact of what they're doing.

"However, Washington is doing a better job now in involving the industry. We have been solicited for input. I think there's a tendency to get things done in a hurry vs. doing it right. I think that's changing now."