Certification is a Must
Regulatory mandates are increasing and it doesn't appear that the climate will change soon. This is both good and bad news. The good news is that many regulations exist to protect the borrower, and others to protect the broader United States financial system. Also, a rapid move to standards in policy, process and data will create significant efficiencies in the market over time.
Many lenders and service providers, however, view the new regulatory and associated standards as a burden. They have a short-view, which frankly, is easy to understand. For years, they have faced increasing costs, and the new regulations just add to the financial burden. Even though the industry will eventually settle into a standard set of processes and data, it is hard to imagine because it will require significant investment in training, education and certification. The real challenge to the industry, then, is to expand the short-term view into the future and work to understand and leverage the benefits of standardization. It won't be a simple snap of the fingers, though. The key will be to strategically move along with the industry to a standards-based model, both internally and with all counterparties.
Just 10 years ago many of the mortgage processes were manual or used technologies that automated core functions, such as loan application, underwriting and core servicing. Read More Here...