Skip to main content

QuestSoft survey finds RESPA tops compliance concerns for second consecutive year

NationalMortgageProfessional.com
Apr 21, 2010

According to QuestSoft’s annual compliance survey of lenders, the recently enacted fee tolerance changes to the Real Estate Settlement Procedures Act (RESPA) continue to pose the greatest mortgage compliance concern in 2010. This marks the second year that RESPA has held the top spot among the lenders surveyed. The poll rated the level of concern among 464 lenders for 12 regulatory changes affecting the mortgage industry this year. Eighty percent of respondents cited the adjustments to fee tolerance rules set forth in RESPA as a major concern for lending practices. Rounding out the top three concerns were Truth-in-Lending Act (TILA) changes (74 percent cited major concern) and other RESPA issues (66 percent cited major concern). “Even though RESPA’s new rules have been active for a few months, lenders are still concerned with how to comply with the fee tolerance rules and properly disclose loan terms to consumers,” said Leonard Ryan, president of QuestSoft. “Lenders are also closely watching predatory lending laws and new regulations at the state and local levels.” Changes to federal, state and local lending laws remained the fourth highest concern, with 37 percent of lenders citing these potential changes as a major concern in 2010. Increased Fair Lending Exam scrutiny rounded out the top five with 31 percent of lenders claiming it as a major concern. Ryan said one surprising result was the lack of concern for the multi-state exams many lenders will be facing by the end of 2010; with only 15 percent reporting it as a major concern. “Even though 70 percent of QuestSoft’s client base will be subject to multi-state exams by the end of 2010, it ranked at the bottom of the survey,” Ryan said. “The placement of Truth-in-Lending changes planned for this summer as the second highest concern suggests that compliance professionals are being forced to deal with one new compliance crisis at a time.” Ryan added that since lenders are so worried with the next immediate change, they will have to rely on their compliance partners to look ahead and prepare for more long-range compliance changes. For more information, visit www.questsoft.com.
Published
Apr 21, 2010
Embattled Boston, Dallas Fed Chiefs To Resign

Stepping down early amid criticisms of personal stock trades made during the pandemic

Regulation and Compliance
Sep 28, 2021
The Fed: Tapering Could Start In November

Open Market Committee also expects to raise federal funds rate a year earlier, in 2022

Regulation and Compliance
Sep 23, 2021
HUD, FHFA: Freddie Mac Can Buy Group Home-Backed Loans

Agencies issue rule clarification after a mortgage lender refused to lend to an individual renting to a group home

Regulation and Compliance
Sep 23, 2021
Fannie Mae Plans To Restart Credit Risk Transfers In 2021

Paused Since March 2020, New CRT Transactions To Begin In October

Regulation and Compliance
Sep 21, 2021
Biden Nominates McCargo To Lead Ginnie Mae

Currently Serves As Senior Advisor For Housing Finance At HUD

Regulation and Compliance
Sep 14, 2021
OCC Plans To Rescind 2020 CRA Rule

The OCC formally issued a proposal to rescind a controversial rule within the Community Reinvestment Act (CRA) that was published in June 2020.

Regulation and Compliance
Sep 10, 2021