As we have written here before, the election of the Biden-Harris ticket was sure to foretell a new regulatory approach to managing banks and banking. Given the “loosening” of oversight in the previous four years where nary a nasty audit was to be found and headline screaming consent orders were few and far between, it is certain that this will now change.
It is common in the rush of high volume business to clear away impediments to quick and easy loan closings. Anything that mucks up the loan manufacturing process creates a bottleneck or logjam and means that a whole host of people are unhappy, particularly loan officers and their borrower clients. Often lost in the speed of production is proper risk oversight and well-managed regulatory compliance.
It is clear by the many recent moves by the CFPB, including this latest announcement, that the agency is serious about oversight and consumer protection. More enforcement employees means more audits and more enforcement actions. Now is the time to step back and survey your compliance platform to make sure that you are managing risk from origination through closing. Make sure that your internal reporting is in order and that if you are relying on internal systems and processes to demonstrate compliance with fair lending and consumer protection, that you can show it. You may also want to utilize a third party quality control arrangement to prove your system works. If you are relying on outside vendors, make sure they can offer proper compliance reporting and customer support to help your audit team pass with flying colors.
At Secure Insight we offer a proven method of managing third party settlement risk, backed with 24/7 reporting and a trained customer service department. Our tools have been vetted and passed during audits many times, and we proudly stand by our decade-long track record: over 12 million successful loans closed under our watch, protecting nearly $3 Trillion in funding wires.
For more on the topic see the MBA news article which was published yesterday here: https://newslink.mba.org/mba-newslinks/2021/february/cfpb-goes-on-hiring-spree-as-it-looks-to-ramp-up-enforcement/?utm_campaign=MBA%20NewsLink%20Monday%20Feb.%2022%202021&utm_medium=email&utm_source=Eloqua