Tony Garritano, columnist for Progress in Lending, spoke with some industry heavyweights including FormFree’s Brent Chandler to see what they expect to happen in 2016
Lastly, Brent Chandler, Founder & CEO of FormFree, said that 2015 was pivotal. He said, “We saw the return of purchase loans and a transition toward a more wholesome housing market, which I see continuing next year. Compliance became a huge focus of lenders in 2015, and it will remain so in 2016. The CFPB has shown it is serious about bad actors in the financial services industry, as the agency’s enforcement penalties doubled between 2014 and 2015.
“Yet lenders have more to worry about than the CFPB. As the purchase market grows and improves, a large segment of the industry is still relying on paper-based methods of verifying borrower data and asking borrowers themselves to submit proof of their own income and assets, which leaves lenders open to mortgage fraud. At the same time, more lenders are realizing that the only way to stay compliant, increase efficiency and avoid borrower fraud is to stop fussing around with paper bank statements and go right to the source of the data. In fact, a growing number of large banks and consumer direct lenders are embracing digital verifications, and the GSEs now accept them too.
“I also see a general trend toward a more digital mortgage transaction based on straight-through processing and direct source data from borrowers, which leads to greater certainty in lending decisions,” said Chandler. “I’m not just talking about electronic documents and PDFs, but digital data packets that include all the data about a borrower’s identity, income, assets, tax returns and credit. This data will provide transparency into every mortgage transaction, from origination through closing and delivery to the secondary market.”
Chandler conclude, “To create a totally digital mortgage process, however, lenders need to start thinking beyond traditional technology solutions. But that will change as the competitive advantages of digitizing borrower data—which include increased speed, efficiency and cost savings—become more apparent.”
You can view the full article at The Forecast For 2016 Is … .
FormFree is delighted to be included in the feature.
