As a top provider of high-performance software, data and analytics solutions for the mortgage industry, Black Knight continually monitors regulatory technology and industry updates for their potential impact. Staff also meet with regulatory bodies like the CFPB to gather insights and share feedback with clients.
“This provides us with yet another opportunity to continue to assist our customer base with compliance through thought leadership and a variety of technologies to monitor and automate related processes,” Federspiel says of the ‘junk fees’ crackdown, adding, “What the CFPB is really targeting here is compliance more than intent.”
So whether they snuck in an extra payment or simply miscalculated the charge is irrelevant.
How To Come Clean
Lenders should make sure their Loan Origination System (LOS) is set to the correct rate-fee cap within a loan agreement to avoid issuing inaccurate late fees.
Ongoing property inspections to delinquent borrowers are often handled by third-party servicers, who charge the borrower. In certain cases the CFPB has found that servicers repeatedly sent property inspectors to the wrong address, charging the borrower in each instance.
Federspiel recommends companies perform a data quality check in their system for addresses that require regular inspection.
“In real estate there’s a saying - the number one rule is location, location, location,” she says. “For servicing portfolios and the management of these I would say the number one rule is data, data, data. The volume of data in this industry and access to it just grows exponentially each year. In order to review servicing portfolios, originators and servicers alike really need to have a trusted technology partner to provide best-in-class integrated solutions and more importantly, intelligent analytics. That allows them to spend their time focusing on the customer.”