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Regulatory and GSE Concerns Remain at Lending Forefront

Apr 15, 2013

Mortgage Builder Software, a provider of leading loan origination and loan servicing software systems (LOS and LSS), has seen interest and participation in its work groups grow substantially in recent months as lenders seek ways to address compliance and repurchase concerns with the U.S. Department of Housing & Urban Development (HUD), Fannie Mae and Freddie Mac. The work groups provide instruction, advice and an open forum for Mortgage Builder users to discuss critical industry issues affecting their loan origination and servicing businesses. Mortgage Builder has provided work group support for wholesale production and underwriting for more than three years, but several new groups have been created over the last 12 months in response to client requests, observes Melissa Kozicki, Mortgage Builder’s director of compliance and client development. “Clients are more aware than ever that staying abreast of regulatory requirements and loan repurchase parameters is an integral part of doing business in today’s market,” said Kozicki. “The work groups have grown rapidly among our users and have surged more than 20 percent in the last six months due to compliance pressures.” Mortgage Builder has established work groups in several areas, including government lending, quality control, secondary marketing, underwriting, wholesale lending, and regulatory support, said Kelli Himebaugh, corporate vice president. “Work groups meet via conference call on a regular basis, and the regulatory compliance support group is currently the most active. The group meets every week to discuss common issues and using the Architect LOS platform to help them stay compliant with current rules,” said Himebaugh. “The increase in activity is directly related to soaring client concerns in this regulatory environment. No one wants to be subject to repurchase demands and penalties for noncompliance with Dodd-Frank and CFPB regulations."  Mortgage Builder clients are enthusiastic about the work groups, particularly as they affect lender readiness in the all-important area of regulatory compliance. “Having the ability to discuss issues with other Mortgage Builder users has been instrumental in helping our company become confident that we are well prepared for compliance with current and prospective regulatory requirements,” said Phyliss Hilger, vice president of mortgage operations at Howard Hanna Mortgage Services of Cleveland, Ohio. “These group meetings are helping us to be ready for the challenges that lie ahead and provide a sounding board for a broad spectrum of critical matters affecting the mortgage community.”
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