The safe mortgage education program – which is based on the Secure and Fair Enforcement Mortgage Licensing Act – a bill signed into law by former President Bush on July 30, 2008, that was a major component of the mortgage reform act, sets the minimum required standards for training of mortgage bankers and lending officers.
The need for data management and technology standards among mortgage bankers has never been greater. The Mortgage Bankers Association – MBA supports industry technology in many different ways and views their support as just one of the many ‘dividends’ an individual could benefit from with membership in their association. The MBA supports the following categories: special projects, education, industry standards, conferences and technology committees.
For mortgage education, the MBA technology committee provides statistical information, leadership and guidance to the MBA members by reviewing the most critical business issues in the industry, and then helping to explain how different technologies could help streamline the process, mitigate risk, reduce costs and ultimately improve the bottom line.
One committee within the MBA – The Enterprise Data Management Task Force – was set up to analyze the data-quality issues from a loan life-cycle perspective. There are approximately 30 to 50 critical items of data that move through a loan process over the life of a loan and typically are evaluated by ratings agencies and investors.
The committee will be able to assess how the risks to quality change as the data moves through the various loan processes as it is examined by the committee at each loan life cycle stopping point. The greatest opportunity for processing improvement will go to the points in the life of the loan having the most variable risk or highest levels indicated by the quality check.
Ultimately the goal of this loan life-cycle checking is to pinpoint where a loan might fall into default or otherwise cause the individual or family problems to which foreclosure may be the only answer – something the mortgage lenders want to avoid.
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