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Generating High Quality Mortgage Loans: How a Rule Compliant Business Strategy Helps

The mortgage industry witnessed a massive turn in its operations after the implementation of Dodd-Frank Act. To be able to sustain in business, lenders had to focus more on quality of loans than quantity. The changing times brought the focus back on customers and demanded that the lenders be more customer centric in their approach.

While it is commonly believed that stringent compliance regulations are eating into lenders’ profit margins, it is important to note that by following a rule compliant business strategy, they can actually make their business more profitable. Wondering how? Let us discuss the benefits of walking the straight line of Dodd-Frank Act.

Read more about How the Dodd-Frank Act Has Jacked Up Compliance Costs

Dodd-Frank Act

Avoid Litigation Nightmare

When a business strategy focuses on providing right value to the customer, it earns favorable reputation in the eyes of regulatory bodies. The trick is to align your business growth with customer requirements so that your intention is clear in the eyes of compliance board. It is advisable to genuinely cater to borrower needs by offering products that meets their requirements along with your business goal, thus keeping the growth and customer service in perfect balance. This simple strategy will not only make you look good in the books of supervisory authorities, but also avoid costly litigations.

Providing Correct and Concise Information Upfront

Most borrowers complain that the lenders do not give them timely status during and after the lending process. However, it has been necessitated by TILDA/RESPA regulations to provide information to the borrowers within the stipulated timeframe. Not meeting this timeline can lead to expensive compliance violation and poor customer experience. The loan processors can overcome this issue by providing real-time status update to the borrowers through a secure portal. This portal can make the system faster and more efficient by empowering the borrower with latest updates regarding their pending loan application. At the same time, it can prevent violations caused due to lack of information to the borrower.

Quick Evaluation of Each Applicant

The best way to improve borrower experience and avoid compliance issues is by enabling the loan officers to quickly assess each applicant at the start of the process. They should be able to determine their eligibility and loan prices by entering the borrower information into their system. Not only does this accelerate the process by ensuring that correct loan program is selected, but also helps the client understand what is needed from them in order to close the loan. Needless to say, this practice will allow the lenders to close more loans quickly and successfully, staying well within the compliance framework. At the same time, it also reduces the overall cost to close each loan while increasing the percentage of closed loans.

Compliance has often been demonized for being the profit eater for lenders. However, teething problems aside, staying within the regulatory framework can do more good than harm. Not only will your clients have better borrowing experience, but the complete assessment of each applicant will ensure that the borrower is genuine and has every intention of paying their mortgage in full.

Understanding business strategies from compliance point of view can be tricky work, especially when you have so much on your plate as it is. What you need then is a reliable mortgage process outsourcing partner that can take that off your hands so that you focus on your key competencies. Don't worry! Expert Mortgage Assistance has you covered. We are a team of experts who understand the dynamic mortgage landscape and its workings like the back of our hands. If you need specialized mortgage outsourcing services, talk to us today.


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Common Loan Closing Types

  • Mortgage Closings
  • Refinance Closings
  • Commercial Loan Closings
  • Reverse Mortgage Closings
  • Home Equity Loan Closings
  • FHA Loan Closings
  • Loan Modifications

Loan Closing Features

  • Comprehensive review of closed files
  • Aggressive pre-close review
  • Confirmed Closings within 24 hours
  • HUD settlement statements done within 3 hours
  • Same day closings entertained
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