Magazine article Mortgage Banking

The Paperwork Burden

Magazine article Mortgage Banking

The Paperwork Burden

Article excerpt

Four years after Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, the industry is waking up to the ultimate price it will have to pay for the mortgage crisis. And it comes in the form of costly extra processing steps, bloated compliance staffing and a whole lot of extra paper.

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It basically boils down to this: Where there once was lax regulation, there now is an overabundance. Like it or not, that carries big costs. It has already driven some to exit the mortgage business.

The roughly 400 rule-making projects spun off by DoddFrank have already added up to a lot of extra documents and redundant processing steps for lenders. We offer vivid evidence of this in an article this month by Cy Brinn, chief operating officer of VirPack, McLean, Virginia. The articled, titled "Buried in Loan Docs," showcases new research done by his firm that shows how average loan files have ballooned in recent years.

The article features a chart that shows how the percentage of loan files with 800 or more pages went from 3 percent in 2010 to 16 percent by first-quarter 2014. …

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