“All of the changes have been non-stop since the credit crisis and I hate to say it, but it’s for the best,” Ed Fournier of Connecticut Home Mortgages told Mortgage Professional America. “All the changes will hopefully simplify the process and weed out the bad (players).”
Unquestionably, regulators have been clamping down on the mortgage industry following the economic downturn that was largely caused by lax mortgage lending standards.
And while it’s been a struggle to keep up-to-date with every change, Fournier believes smaller originators are better equipped to implement them.
“You need to be up-to-date on all the changes because one missed change could affect a borrower and (hurt an originator’s reputation),” he said. “If I’m not up to date on the mortgage changes, someone else in my office is.”
Fournier is echoing a sentiment previously shared by a smaller lender, who believes the big banks will struggle more than their leaner counterparts when it comes to implementing the next mortgage rule change.
“The TRID fallout will be interesting. Smaller lenders will be able to better handle the changes – we’ve collaborated with an attorney firm and they’ve developed a portal that allows for collaboration between the firm, the lender and the title company to work on closing disclosure,” Robert Poe, vice president of Inwood Bank told MPA. “They can go into the portal and approve each other’s changes.”
The deadline to implement the TRID guidelines is October 3.
Increased regulation has certainly brought with it some stormy times for originators, but some see the sunshine through the clouds.