New compliance laws place new emphasis on training

by Donald Horne24 Sep 2015
The new compliance laws being introduced to the industry are placing a greater emphasis on experience – but unfortunately those same regulations are pushing that expertise out of the mortgage space.
“As a corporate trainer I have seen the need for more training throughout the industry,” says Keli Hollowell, training manager with Southwest Funding. “A large amount of experienced people have left the industry due to the new compliance laws.”
Those experienced people have moved into other industries, leaving behind a dearth of seasoned individuals and newcomers not yet familiar with the mortgage industry, says Hollowell.
“We need to train the unseasoned individuals coming into the industry and give them the skills and knowledge they need to do the job correctly and efficiently,” Hollowell told MPA.
While training is needed to bring newcomers up to speed on new regulations – like TILA-RESPA disclosure rule – there also needs to be a focus on what many may consider to be an old-fashioned approach to doing business in the internet age – the face-to-face client meeting.
“I feel that more than ever there is the need for face-to-face interviews with clients due to the fact that there is so many ways a client can run into trouble when applying for a home loan,” says Hollowell. “With face-to-face interviews the loan originators have the opportunity to counsel/coach their clients and help to prepare them for the upcoming mortgage process.”
The face-to-face interviews help eliminate most unforeseen difficulties that can arise during the mortgage loan process, she says, and that those same discussions can lead the client “to a better understanding of the dos and don’ts in the process of buying or refinancing a home.”


  • by 1Omega | 9/24/2015 2:04:15 PM

    Face to Face client meetings are nothing more than "nice' in todays electronic age of doing business.
    Most of the big players in the Mortgage Industry have developed proprietary user friendly software to guide and coach a
    prospective borrower thur the maze of a mortgage application. it is kind of difficult to mess up if you follow the prompts.

    In addition executive decisions and policies at the big players stipulate a Loan officer dedicate the time that would be directed for face to face client visits, sometimes with travel a 4 hour process, at which all the information must be on line anyway.(.no more paper mortgage applications, verification authorizations, and so forth,) be used to originate New Purchase business.

    Further with electronic applications like skype, and others you can be face to face, but without the need to invest 2-4 hours of dead time in travel.
    And finally, if the Loan Officer is originating only 3 applications a day...there just isn't any time to visit clients face to face and get the applications in processing the same day.


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