Top 5 Federal Compliance Issues Impacting Mortgage in 2025

Tariffs and Wall Street are dominating the news and the Mortgage Industry is weighing the possibility of continued lower rates we have seen in the last few weeks. Even with all these factors, Lenders and Servicers must continue to keep their eye on the the regulatory landscape.

Here are the top 5 compliance challenges mortgage pros need to watch:

 1️⃣ Fair Lending Scrutiny

Regulators are laser-focused on redlining, bias in AI underwriting, and disparate impact. Make sure your models are explainable and auditable.

 2️⃣ Section 1071 Ripple Effect

Expanded small business lending data collection is setting a precedent. Expect this to influence mortgage data requirements like HMDA.

 3️⃣ UDAAP Expansion

The CFPB is broadening the definition of “abusive.” Mortgage servicers, especially around default, loss mitigation, and fee practices.

 4️⃣ Cybersecurity & Data Privacy

Borrower data is sacred. The feds are watching vendor risk and third-party data handling more closely than ever.

 5️⃣ Escrow & Junk Fee Crackdown

The CFPB is eyeing closing costs, title fees, and affiliated business arrangements. Transparent fee structures are no longer optional.

 🔍 The message is clear: Compliance isn’t a checkbox, it’s a strategy. Get ahead now, or risk falling behind. 

Are there other regulations you are tracking? Please share in the comments below.

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