Since 2010 the mortgage industry has faced unprecedented regulatory pressure. Too big to fail and too small to comply has become a common scenario as there an inverse relationship between regulatory pressures and profitability. Nearly every institution has seen fixed costs increase in order to be compliant while profitability has declined.
The CFPB represents a regime shift in regulation. With a staff of 1200 and over half in enforcement, it's clear the CFPB is very interested in examining and ensuring compliance with both old and new regulations. The examination process is very unique from the past. The scope of the examinations is not limited. In short the CFPB will be measuring many lenders' compliance in areas that some lenders have not considered. For example many non-depository lenders may not have considered having a formal information security plan in the past. Depository and non-depository lenders are concerned with the large financial penalties for non-compliance and the exam workload can be vast and the business disruption potential is real.
Have you prepared your organization for a CFPB audit?
What are you doing to measure, diagnose and take corrective actions within your organization to ensure full compliance?
Are you actively training your staff and conducting assessments consistent with current regulations and the CFPB?
Written, compliance policies are not enough. Measuring execution is key and analysis with corrective action essential. Training, assessing and communicating with your staff is more important than ever.
Regulatory pressures drive up fixed costs and reduce profits. How does your current profitability compared to profits of the past?
Do you have a strategy for cost reduction that simultaneously creates efficiencies and keeps you compliant?
Could your mortgage process be more profitable with a fulfillment automation strategy that would allow you to provide better customer service?
Utilizing an outside source can be a tremendous advantage. Our goal is to help you be compliant and profitable designing and implementing custom solutions and strategies for your individual needs.
Our team is here to make sure you are prepared for the future.