Sanjeev Dahiwadkar, CEO and president of IndiSoft:
Compliance costs will make it more challenging for companies to effectively manage operational expenses. This is primarily due to the high cost of implementing new processes and technology that is necessary to comply with new regulations. Compliance efforts, coupled with a budding purchase market, a waning refinance market and the slow growth in the overall economy, will make 2014 a transitional year for the entire mortgage industry.
In addition, mortgage servicing, which historically has not been as highly regulated as mortgage origination, will need to become more accustomed to regulations set by the CFPB. This could result in longer processing time for loan applications and fewer new loans.