Frictionless compliance: compliance risks can be better managed by making use of automated tools before a loan is closed.

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Cover Report: Compliance Trends/Legal Issues

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Frictionless compliance: compliance risks can be better managed by making use of automated tools before a loan is closed.

Owning a home is a critical part of the American dream--in fact, for many it is the American dream. In recent years, a growing number of people from what the lawyers and regulators call "protected classes" have been able to live that dream by purchasing their own homes. Nonetheless, community activists continue to assert that lenders are still not doing enough to meet the credit needs of the entire community. [??] They cite statistics showing that as of the fourth quarter of 2005, fewer than one-half (48 percent) of all African Americans and just 50 percent of Hispanics owned their own homes, while 76 percent of all whites were homeowners, according to the U.S. Census Bureau. [??] Sometimes (although rarely), qualified middle- and low-income borrowers are unable to obtain mortgages. In other instances, borrowers at the prime/subprime margin apply for subprime loans when they might be able to qualify for a prime mortgage with a little extra work. And, as loan defaults seldom directly affect mortgage originators, some brokers do not adequately research loan product and p...

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