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How to Ensure Mortgage Compliance & QC Success in 2022

The mortgage compliance world has undergone major changes since the pandemic first hit. Between the Coronavirus Aid, Relief and Economic Security (CARES) Act, the updated collateral analysis requirement, and the start and end of temporary servicing supervisory and enforcement flexibilities, keeping up with requirements and ensuring mortgage compliance hasn’t been a walk in the park.

And 2022 will certainly hold its own set of compliance changes and challenges. Fortunately, you can familiarize yourself with them now and learn how to prepare for what’s to come this year.

Enhanced Focus on Cybersecurity & Fraud

There’s no doubt that technology brings opportunities for growth and efficiency to the mortgage industry. However, the shift to automated processes is not risk-free. With digital innovation on the rise, the industry will have to move increased efforts to combat cybercrime and fraud to the 2022 to-do list.

Such threats are already on the minds of lender groups as they contemplate the growing adoption of e-signatures, remote notarization and other digital mortgage conveniences that proliferated during the pandemic – and that consumers increasingly expect.

The MetaSource Mortgage Compliance Team, which closely monitors the concerns of lender organizations, says cybercrime and fraud are definitely on the minds of small and mid-size lenders who want to be able to ensure compliance and protect their consumers as they offer more digital products.

With more and more mortgage processes going digital, compliance requirements are evolving. It can be difficult to keep up with the continuously changing guidelines. That’s where a trusted partner comes in. The top mortgage quality control partners always stay on top of ever-changing agency requirements and efficiently conduct required QC processes on your behalf.

Increase in Appraisal Waivers

An experienced partner can also be of great help when it comes to appraisals and appraisal waivers. The number of appraisal waivers has been continuously increasing, and the MetaSource Mortgage Compliance Team predicts that this trend will continue into the new year.

According to the American Enterprise Institute (AEI), there has been an upward trend in the share of appraisal waivers over the last couple of years. Their data shows that appraisal waivers accounted for 45% – nearly half – of all GSE valuations in December 2020.

A large part of the uptick in appraisal waivers has to do with changes in agency requirements – and those changes never stop coming. The agencies just recently released changes to the collateral field review requirement, eliminating the need for field reviews in most circumstances.

With a partner who stays on top of all of these changes, you won’t have to worry about ensuring mortgage compliance in 2022 and beyond.

Shortage of Qualified Personnel

It’s no secret that the mortgage industry is experiencing a staff shortage. And in the midst of what is being called The Great Resignation, this shortage could get worse. If you’re performing quality control audits in-house, a lack of employees could create considerable compliance risk in the new year.

The best way to combat this risk is to overcome the issue of being understaffed by outsourcing mortgage quality control to a reliable QC partner. Such a partner will have the industry experts required to ensure compliance – and they provide the flexibility of a variable cost. So, you can reduce risk and save money. It’s a win-win!

Additional Scrutiny

In the coming months, you can also expect additional scrutiny of the lending industry as legislators and regulators strive to enhance enforcement of fair lending and servicing practices.

Just in November, the Consumer Financial Protection Bureau (CFPB), along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and other federal and state regulatory agencies, issued a statement announcing the end of their flexible, pandemic-driven approach to mortgage servicing.

In addition, the bureau issued a Supervisory Highlights report on December 8th that highlights findings of violations in several areas, including mortgage servicing and fair lending. In response to the findings, the CFPB has announced its commitment to resolving issues surrounding both fair lending and servicing practices.

These regulatory focuses may have come to light in 2021, but it’s likely that they will impact the industry in 2022. It’s predicted that the CFPB will be paying especially close attention to redlining and foreclosure policies in the coming months. A mortgage QC partner with a suite of mortgage audits can help you ensure compliance during this stressful time.

Make Your Life Easier in 2022 with Compliance & QC Expertise

In short, lenders will be facing all of the usual challenges, plus a few more in 2022. All signs point to a year that calls for maximum efficiency and processes that let you keep up without losing sight of the big picture. For those that can, the opportunities will outweigh the problems.

MetaSource can help. Our team of mortgage experts is committed to your success in 2022 with cost-effective QC services and technology that are constantly improving to keep up with the challenges you face. When you partner with MetaSource for your QC and compliance needs, you get more than a product or a service, you get customized solutions that grow with you to help you meet whatever challenges are around the corner. Give us a call to learn how we can help make 2022 your year.

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