Lenders needn’t wait for expert consensus on market trends; instead, maintain the long view on market opportunities

When U.S. interest rates topped 7% for the first time in 22 years this August, there was a rash of articles by leading industry economists predicting what interest rates would do for the rest of the year and into 2024. The conclusion? There was no consensus among economists. But, according to Wolters Kluwer Compliance Solutions experts, that doesn’t have to mean that lenders must wait around for experts to agree, as there are still long-term economic trends—and regulatory realities—with which lenders must contend.

“At a time when all lenders are struggling to reduce costs, some institutions may be tempted to reduce staffing in areas like compliance that don’t generate revenue or profit,” says Simon Moir, Vice President, Banking Compliance Solutions, Wolters Kluwer Compliance Solutions in a recent article for HousingWire, “The Market Outlook May Be Unclear, but Lender Challenges Cannot Get Clearer.”

“Given the current zero-tolerance environment, however, this is dangerous, short-term thinking. Fair lending examination, supervision and enforcement, for example, are top priorities for the CFPB, the prudential regulators, DOJ and HUD,” he says.

Moir goes on to explain why maintaining the long view is essential for lender success in a dynamic economic and regulatory environment.

“Regardless of market conditions, there is a need to ensure that compliance and risk management teams are fully staffed and supported at the highest levels of the organization. One way to leverage these resources is to support them with data and analytics solutions that automate various compliance tasks, such as HMDA and CRA reporting,” Moir says. “These solutions can provide early warning signs for major lending issues, such as redlining, appraisal bias or identifying practices that could be deemed unfair or abusive. The goal should always be to identify these issues before regulators do.”

HousingWire is an influential source of news and information for the U.S. mortgage and housing markets, boasting a readership that spans lending, servicing, investments and real estate market participants as well as financial market professionals.

Wolters Kluwer Compliance Solutions is a market leader and trusted provider of risk management and regulatory compliance solutions and services to U.S. banks, credit unions, insurers and securities firms. The business, which sits within Wolters Kluwer’s Financial & Corporate Compliance (FCC) division, helps these financial institutions efficiently manage risk and regulatory compliance obligations, and gain the insights needed to focus on better serving their customers and growing their business. Wolters Kluwer FCC is also home to CT Corporation, a leading provider of registered agent services, incorporation services and legal entity compliance, including the new beneficial ownership requirement for small businesses effective January 1, 2024.

About Wolters Kluwer

Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software, and services for professionals in healthcare, tax and accounting, financial and corporate compliance, legal and regulatory, and corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

Wolters Kluwer reported 2022 annual revenues of €5.5 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 20,900 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

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Media Contact David Feider Associate Director, External Communications Financial & Corporate Compliance Wolters Kluwer Office +1 612-246-9454 david.feider@wolterskluwer.com