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FROM OUR DESK default servicing | in print and online The Golden Rule The Dodd-Frank Act includes 398 rulemaking requirements, according to Davis Polk & Wardwell, a D.C.-based law firm that specializes in regulation. Forty-nine rulemaking requirements are directly related to mortgage reform, and Davis Polk & Wardwell says just 15 of those had been finalized as of May 1. for me rly PUBLISHER EDITORIAL DIRECTOR DSNEWS.COM EDITOR DSNEWS.COM VIDEO EDITOR STAFF WRITER CONTRIBUTING WRITERS COPY EDITORS Just the handful of rules that have been made final entail significant retooling of mortgage processes—from property appraisals and origination checklists to servicing disclosures and borrower communications, the industry is looking at a whole new way of doing business. On top of reform measures explicitly written into legislation, the industry is adjusting to mandates spelled out in the National Mortgage Settlement, amended regulatory consent orders, and the impact of legal decisions handed down from jurisdictions across the country. Needless to say, there's a deluge of new rules and requirements to understand and adhere to, with more to come. As can be expected, compliance has become the biggest concern for mortgage and real estate professionals industry-wide, and in keeping with our purpose of providing you with the most timely news and information on the issues that matter most, compliance is a central focus of this issue of DS News. As Seán Ryan, CEO of the mortgage technology firm Aspen Grove Solutions, put it: Compliance for the mortgage industry is not just here, it's here with a vengeance. But rest assured, we're here to help. In "New Ideas in Compliance," technology correspondent Nicole Holland Pearce takes a look at the technology solutions emerging in various fields of default servicing that have been developed and designed to make keeping up with the many checks and balances of compliance a little easier. Turn to page 46 to see how companies are getting out in front of compliance challenges to make regulatory adjustments smooth and seamless for their clients. Regulatory compliance isn't the only form of adherence facing servicers today. Risk management and compliance monitoring expert Vincent Spoto explains how to provide investors with the visibility and transparency they're now expecting in "Servicing Surveillance" on page 60. According to Spoto, servicer performance has become a focal point for investors as they seek to maximize cash flows and mitigate loss severities, and compliance with new guidelines and regulations is top priority on the performance checklist. With the entire industry fine-tuning operations and procedures to satisfy reform measures, one area previously targeted for an overhaul has seemingly slipped to the back burner—the government-sponsored enterprises (GSEs). Fannie Mae and Freddie Mac, themselves, have relieved much of the pressure that boiled up in previous discussions about their future by moving from the red into the black. Both companies have released positive earnings reports since the second quarter of 2012 and are handing over billions to taxpayers each quarter, which has softened cries for their reform. In light of the turnaround, we asked James B. Lockhart III and Laurie Goodman to weigh in on the GSEs' future and the timeline for a secondary market revamp. Flip to page 64 to see what these two industry heavy-hitters had to say. Got a burning compliance question you'd like to see addressed in the next issue of DS News? Send it to us, along with any other challenges, issues, or success stories you'd like to share at Editor@DSNews.com. Your DS News Editorial Team 2 EDITORIAL ADVISORY BOARD DESIGN ADVERTISING DS NEWS BLACK BOOK AND LEGAL LEAGUE 100 SOCIAL MEDIA CIRCULATION vol. 11 no. 6 magazine Mark Hulme Carrie Bay Esther Cho Jordan Funderburk Tory Barringer Keith Button, Todd E. Chvat, Lynn Effinger, T. Robert Finlay, Laurie Goodman, James B. Lockhart III, Nicole Holland Pearce, Vincent Spoto Heather Hill, Alison Rich, Cassie Smith, Emily White Youree Jerry Alt, LOGS Network Amy Crews Cutts, PhD, Equifax Steven Horne, Wingspan Portfolio Advisors Jeffrey Jaffee, CitiMortgage Rick Sharga, Carrington Mortgage Holdings David A. Trott, Esq.,Trott & Trott P.C. 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