Regulatory concerns and federalization of product standards are on the minds of mortgage lenders, particularly the large ones, according to the ‘Interim MORTECH 2010 Report,’ released this month. Smaller lenders, meanwhile, find increased regulation absent of benefit, the report suggests.
The smaller lenders surveyed say that although they have little involvement with national issues such as loan modification, they are burdened by the application of increasingly complex business rules.
"Hard-working local lenders have been caught up in an undiscriminating dragnet of financial reform,’ says Jeff Lebowitz, president of Bend, Ore.-based MORTECH LLC. ‘They are suffering the burden of having to comply with complex new business rules and absorb the added costs of training staff and investing in new software,"
When asked what they see as their greatest challenges over the next year, larger lenders stated it was the cost of compliance, and smaller lenders pointed to narrowing profit margins.