Digital Risk said it is starting a task force that aims to set best practices for mortgage risk due diligence.
The company said the task force aims to develop standard practices to improve transparency and confidence in underwriting, fraud and regulatory compliance, particularly reform of the Real Estate Settlement Procedures Act.
When asked why RESPA reform in particular is a focus, president Alex Santos said at the Mortgage Bankers Association's National Secondary Market Conference on Tuesday, "We are seeking clarity on some of the gray areas of the law. In our experience there are different interpretations, all of which are reasonable, of the law's details. When clarified, these will increase the consistency of the due diligence and ratings process."
In addition to due diligence firms, the group aims to also include ratings agencies, deal sponsors, originators and investors.