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n November 2013, the Consumer Financial
Protection Bureau (CFPB) released the results
of a study conducted on the impact of certain
regulations on financial institutions. Although the
focus of the study was limited to the consumer-
deposit related services and did not include the
impact of the regulations on the mortgage-lending
services released in 2013, it contains noteworthy
data for the default industry.
e study focused on the incremental costs
incurred as a direct result of the regulations in
the areas of operations, information technology,
human resources/training, and compliance. e
result of the study revealed the cost of compliance
varied from 1 to 6 percent of each financial
institution's total operating expense. e variance
in cost is due to the institution's asset sizes, with
the smaller firms incurring a higher percentage of
the cost.
e CFPB published no fewer than 29 new
rulings in 2013 related to mortgage servicing. e
cost of evaluating the rulings and implementing
new policies and procedures into servicers'
organizations has been time-consuming and
I N D U S T R Y I N S I G H T / J A N D U K E
Exorbitant expenses remain
top industry concerns.
