January 03, 2014
The high cost of implementing new processes and technology that make it possible to comply with new regulations will make it more challenging "to effectively manage operational costs," says Sanjeev Dahiwadkar, CEO and president of IndiSoft, but it is also steering healthy competition and new product development among technology solutions providers. Historically servicers have not been as highly regulated as mortgage originators and most probably have along way ahead before they are fully ready to comply with the CFPB rules, he says, so as they adjust the likely result is "longer processing time for loan applications and fewer new loans."