\In the wake of the fiscal crisis, the federal government has taken steps to ensure that lenders are abiding by proper practices which were followed less stringently in the years leading up to the housing boom.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a piece of legislation specifically designed to oversee the mortgage markets and ensure that banks are practicing sound lending and minimizing risk both to themselves, investors and homeowners.
Aside from its hundreds of regulations and rules, the Dodd-Frank legislation impacts mortgage lending in many ways. Many banks have had to make numerous changes to the way they do business in order to show that they meet these standards. Perhaps most discussed are new, more-stringent lending practices, which have increased the compliance burden and oversight placed on smaller lenders much more so than larger banks.
Following the role the mortgage crisis played in the recession, laws requiring banks to be more transparent and forthcoming with information regarding loans have also been an important part of the legislation. As a whole, Dodd-Frank has increased the level of scrutiny federal regulators place on lenders, making sure they are making justifiable loans and increasing the potential for penalties or other actions if lending standards are found to be lacking.
While lenders have the opportunity to use any number of property valuation tools, many of them result in less reliable values or updated relatively infrequently. CRS Data's tools provide community banks with the county, property and tax records that give them the documentation they need to show regulators that the property valuations for their loans have a strong base of reasonable proof.
In addition, CRS Data's valuations are updated frequently using property tax records from country records. Using that current data allows lenders to give federal regulators the justification they are looking for in regards to those loans, and also show how the relative value of properties in its portfolio of loans has changed as time has moved along.
“The quality of our work would not be as good without CRS. And it would take hours to get the work done without CRS."
CHARLIE HARPER - Sunmark Community Bank