A new nationwide survey has revealed significant challenges within the lending industry, with more than two-thirds of lenders reporting recurring errors in loan calculations and 60 percent struggling to keep pace with evolving regulations. The findings, from compliance solutions provider Carleton, highlight persistent risks that impact operational efficiency, customer trust, and regulatory adherence.
The survey, which gathered responses from over 2,000 professionals in banking, auto finance, and fintech, found that inaccuracies in loan payments are a frequent problem. Over two-thirds of organizations reported experiencing payment discrepancies on a weekly or monthly basis, exposing them to potential compliance violations and expensive rework.
When asked about the root causes of these errors, respondents pointed to miscalculated fees and add-on products, incorrect applications of interest rates, and simple human data entry mistakes. This environment of uncertainty has eroded confidence in existing systems, with 44 percent of lending professionals rating their confidence at only a 1 or 2 on a five-point scale. Nearly half of all respondents confirmed that compliance issues had already led to internal rework, negative audit findings, or legal exposure.
“This survey shines a light on just how much effort lenders continue to put into getting calculations and disclosures right,” said Tim Yalich, Vice President of Business Development at Carleton. “When confidence in systems is low and errors remain frequent, it signals a broader industry problem — one that demands better integration, automation, and proactive compliance monitoring.”
Keeping Up with Regulations
Managing consistent regulation changes emerged as another major issue for the industry. 60 percent of organizations reported struggling to keep their internal systems and calculations aligned with frequent updates to federal and state lending rules. The survey revealed that implementing these changes is often a slow process, with nearly a quarter of lenders requiring three months or more to adjust to new requirements.
The top compliance challenges cited by respondents included interpreting complex regulations like the Truth in Lending Act (TILA) and state usury limits at 21 percent, followed by updating and testing loan calculation logic at 19 percent and coordinating changes across multiple internal or third-party systems at 18 percent.
Complex Loan Structures Offer Another Roadblock
The report also found that complex loan structures, such as those with tiered rates or variable payment schedules, significantly compound these challenges. 31 percent of lenders said these intricate loan types have a major impact on their processes, frequently causing delays and errors. Only 14 percent of respondents felt their current tools could handle such complexity seamlessly.
These operational burdens translate into significant frustrations for lending professionals. The most cited daily frustration was the risk of making a costly compliance error, followed closely by the time required to finalize deals and the complexity of ever-changing regulations. A surprising number of organizations still rely on spreadsheets for loan calculations, a practice that introduces considerable compliance risk.
Looking forward, the survey indicates strong demand for solutions that can reduce errors and improve efficiency. Lenders expressed a desire for more accurate and reliable calculation software and improved reporting for audit readiness.
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