Paul Sperry on the Fate of Smaller Banks

In this article from Investors Business Daily, Paul Sperry lays out some very real threats to smaller institutions that will come about as an unintended consequence of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“Bankers say the bureau is empowered to demand any information it wants from any bank at any time and in any form. That means spending more time and money filing reports and huddling with regulators vs. serving customers.

Banks will be subject to some 20 new reporting mandates under the Home Mortgage Disclosure Act, including data fields on loan pricing designed to help regulators police "predatory lending."

Paul was kind enough to address the Mortgage Cadence team and our customers in Vail at our recent Aspire Users Conference. I think he did a great job and the many comments we received from attendees afterward indicate they agree with me. He has some great ideas and I’m happy to support him.

As for smaller banks and their reporting requirements, those that use the right technology will find it significantly easier to provide their business partners, their customers and their regulators with the information they need when they need it.

Are you ready to provide information to the CFPB?