Major concerns include data security, reliance on third-party systems, and implementation costs
Although the majority of mortgage lenders find industry data initiatives valuable, they continue to have major concerns, according to a survey of senior mortgage executives conducted by Fannie Mae.
The mortgage industry has seen initiatives, such as the Uniform Mortgage Data Program and the new Home Mortgage Disclosure Act data rules, rolled out to update data standards, transmission protocols, platforms, and data sets. Fannie Mae sought to understand lenders’ views regarding data management and their experience with these initiatives.
Fannie Mae found that 74% of lenders believe mortgage-industry data initiatives are valuable. Larger institutions were more likely to have that sentiment than smaller ones. Mortgage banks and credit unions were also more likely to think initiatives as valuable than depository institutions.
Lenders said the initiatives enhanced data accuracy and consistency, improved the borrower experience, and reduced repurchase risk.
Despite the majority view, lenders continue to have major concerns about these initiatives. Fannie Mae said these issues include data security, reliance on third-party systems, and costs associated with implementation.
Lenders also said implementing these initiatives can be challenging. The biggest roadblocks include updating IT systems, getting key players to follow requirements, working with vendors, and ensuring data quality.
To make data initiatives more valuable to the industry, lenders said clear standards of practice should be developed and compliance issues must be addressed. Initiatives should also ensure integration across all parties and systems.
Overall, most lenders think the mortgage industry is doing well at managing data. However, when asked about their view of the industry’s level of preparedness for data breaches and cyber attacks, only 9% said the industry is “very prepared.” Fifty-eight percent said that industry is only “somewhat prepared.”
Related stories:
House OKs adjustment of HMDA rules for small lenders
Organizations outline proposals for customer data security legislation
The mortgage industry has seen initiatives, such as the Uniform Mortgage Data Program and the new Home Mortgage Disclosure Act data rules, rolled out to update data standards, transmission protocols, platforms, and data sets. Fannie Mae sought to understand lenders’ views regarding data management and their experience with these initiatives.
Fannie Mae found that 74% of lenders believe mortgage-industry data initiatives are valuable. Larger institutions were more likely to have that sentiment than smaller ones. Mortgage banks and credit unions were also more likely to think initiatives as valuable than depository institutions.
Lenders said the initiatives enhanced data accuracy and consistency, improved the borrower experience, and reduced repurchase risk.
Despite the majority view, lenders continue to have major concerns about these initiatives. Fannie Mae said these issues include data security, reliance on third-party systems, and costs associated with implementation.
Lenders also said implementing these initiatives can be challenging. The biggest roadblocks include updating IT systems, getting key players to follow requirements, working with vendors, and ensuring data quality.
To make data initiatives more valuable to the industry, lenders said clear standards of practice should be developed and compliance issues must be addressed. Initiatives should also ensure integration across all parties and systems.
Overall, most lenders think the mortgage industry is doing well at managing data. However, when asked about their view of the industry’s level of preparedness for data breaches and cyber attacks, only 9% said the industry is “very prepared.” Fifty-eight percent said that industry is only “somewhat prepared.”
Related stories:
House OKs adjustment of HMDA rules for small lenders
Organizations outline proposals for customer data security legislation
