Mortgage Accounting Compliance White Papers

In January 2021, Loan Vision released Dr. Schell’s white paper that addressed several topics including the IRLC Fair Value. This March 2, 2021 white paper provides a valuation update based on 12-31-20 secondary margins common among mortgage companies.

While interest rate lock commitment (IRLC) protects customers from market risk, it exposes the mortgage lender to that very same risk. Because of this, mortgage lenders need to have a firm understanding of how changing rates affect the IRLC and how to properly determine the fair value of the IRLC.

In this industry, as part of the lender due diligence process, the financials and credit history of every mortgage banking customer are combed over and scrutinized.

In an age of skyrocketing technological capabilities and ever increasing software functionality enhancements, the mortgage banking industry is now in the age of agility, making it more vital than ever to have a financial system rooted in cutting edge technology that has been built on a solid foundation.

UPDATING ACCOUNTING TECHNOLOGY IS NOT A JOB FOR THE CFO. One of the byproducts of an ever increasing competitive landscape as well as the continuing rise in the cost to originate, is the demand for timely, granular reporting; which, more often that not, older technologies or off-the-shelf financials solutions struggle to produce efficiently.

When it comes to the task of loan origination, the primary focus of the mortgage lending enterprise, most lenders are highly skilled at streamlining their technology platforms.