Technology vendors were rushed to develop appropriate applications and software for the new rule
On the March 21 episode of the Lykken on Lending Internet radio show I host, we had the opportunity to interview legal expert Don Lampe on the influence of regulation on technology in the mortgage industry. In our rush to get into compliance with TRID, those of us in mortgage organizations may have forgotten what a struggle it also was for many of our vendors.
Many of the regulatory changes under TRID were heavily dependent on technology. Therefore, technology vendors in the mortgage industry were equally rushed to develop the appropriate software and applications that could sustain mortgage companies through the changes. And, just as the focus on TRID has started to die down, another regulatory change has come into the spotlight...
With the HMDA updates, technology vendors are rushing to accommodate the expansions of fields for data collection, working on simplifying formatting, and determining how they can make submission easier for us. More and more in today's day and age, a regulatory challenge is becoming a technology challenge.
For those of us in the mortgage industry, it's important to realize this for a few reasons. First, we've got to understand what a struggle it is for our technology vendors to develop some of these products and try to be as patient as possible. More importantly, though, we've got to keep clear lines of communication open with our technology vendors so they understand our needs and can develop the kinds of products we need. Increasingly, we're only as successful as the technology we use to achieve our goals.
