More regulation creating logistical obstacle for mortgage industry

New lending regulation is calling for more transparency in the mortgage industry, a development that could be beneficial to companies responsible for tendering the paperwork required.

New lending regulation is calling for more transparency in the mortgage industry, a development that could be beneficial to companies responsible for tendering the paperwork required.

One such company is International Document Services, which reports it had a record-breaking year in 2011 at the volume of initial mortgage disclosure requests spiked more 80 percent from the previous year.    

"IDS has experienced tremendous growth in document package volume over the past few years, but 2011 was the first year that we saw a dramatic upsurge in a specific document area," said IDS executive vice president Mark Mackey.

In short, mortgage regulators, servicers and lenders are struggling to keep up with all the new documentation requirements that come with the increase of regulation. To cope with the changes, these individuals are turning the responsibility over to companies such as IDS to lighten the load. 

A new document that may give lenders difficulty was recently proposed by the Consumer Financial Protection Bureau. This five-page form is meant to work as the mortgage disclosure for homebuyers and current property owners.



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