MORTGAGE INDUSTRY BLOG

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Increase Profits by Controlling Compliance Costs

Posted by DocMagic on 10/24/2014

By Dominic Iannitti
President and CEO,
DocMagic, Inc.

When the Mortgage Bankers Association released the most recent MBA Quarterly Mortgage Bankers Performance Report, few industry professionals should have been surprised to learn that loan originators achieved the lowest average profit per loan since the MBA began tracking performance in 2008. Likewise, loan origination expenses were the highest recorded in any quarter since the Performance Report was created midway through 2008.

How far has loan origination profitability fallen? The average per-origination profit among independent mortgage banks and mortgage banking subsidiaries of chartered banks in 4Q 2013 weighed in at an anemic $150, according to the MBA report. That’s down from $743 per loan in the third quarter. Meanwhile, loan production expenses increased by $591, to $6,959 per loan from the previous quarter.

Certainly the drop in mortgage originations, approaching 40% for some of the nation’s largest lenders, along with the inclement weather much of the nation received earlier this year, contributed to mortgage bankers’ current financial performance. Coupled with the precipitous rise in compliance-related expenses the industry has been experiencing, the lending side of the mortgage business is feeling the squeeze. According to the MBA, lenders are earning only 7% of what they had been making just one year ago. Obviously, this is not sustainable.

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Podcast: The DocMagic Moment – Episode #19 – Why Compliance Matters

Posted by DocMagic on 09/23/2014

Grow your business without the fear of non-compliance.

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Podcast: The DocMagic Moment – Episode #16 – Take the pain out of QM

Posted by DocMagic on 05/07/2014

In this edition of the DocMagic moment, Ron looks back on how the CFPB’s January rules changes have impacted the industry.

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Ability to Repay/Qualified Mortgage Rule | A Step-by-Step Approach

Posted by DocMagic on 05/30/2013

This Dodd-Frank webinar includes how to’s and guidance for developing a practical, step-by-step plan for understanding and preparing for the Ability to Repay Rule/Qualified Mortgage Rule. You’ll learn what documents are required or suggested to evidence compliance with these rules as well as various audits to enhance compliance.

- You’ll learn how to determine Ability to Repay.
- You’ll understand which transactions are covered by the Ability to Repay Rule.
- You’ll learn ways to make a Qualified Mortgage fall under a “safe harbor” for compliance.

We will also provide useful tips and tools to help you develop a reasonable plan for implementation and compliance. Featuring speakers with compliance and legal expertise, the webinar will offer focused perspectives and hands-on experience with Dodd-Frank compliance.
Register Now

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DocMagic Compliance Webinar Attracts Record Crowd

Posted by DocMagic on 05/30/2013

Press Release
Dodd-Frank Implementation Roadmap program attracts over 2,000

DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance and eDelivery solutions for the mortgage industry, announced today that its Dodd-Frank Implementation Roadmap webinar attracted a capacity crowd, with over 2,000 people requesting a spot at the virtual table, making it the most popular online event the company has presented this year. The program, which aired May 15, was the first in a series that the company is offering to the industry and was designed to help those who may be subject to the final Dodd-Frank Rules jumpstart implementation of the Rules. Other webinars in the series include the Ability-to-Pay/Qualified Mortgage, Loan Officer Compensation and HOEPA.

“The Compliance Edge in-house compliance team is proud to sponsor this Dodd-Frank webinar series. The high turnout for our Kick-Off webinar demonstrated that compliance with the Dodd-Frank Rules is at the forefront of everyone’s mind,” said Melanie Feliciano, DocMagic’s Chief Legal Officer and co-host for the event. “In fact, based on polling taken during the webinar, it is clear that many in our industry, at this point in time, do not feel sufficiently prepared to comply with the Dodd-Frank Rules. Industry participants are navigating a very complex compliance landscape right now, and they need tips and guides as well as dependable tools and resources they can use to mitigate noncompliance risks with the Dodd-Frank Rules.”

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