March 2016 - RIP Dodd Frank

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 29 FEATURE THE INDUSTRY LEADER IN eCLOSE TECHNOLOGY. With our iSignroom TM and eSignPad TM technology, it has never been easier to electronically close your transaction anywhere, anytime! One of 5 national eClose providers selected to be part of the CFPB's eClose Pilot Program BE FULLY COMPLIANT WITH AUGUST, 2015 CHANGES TODAY! When you want the ultimate closing experience, think eClose, and think PeirsonPatterson, LLP JASON L. WRIGHT PEIRSONPATTERSON, LLP JASON.WRIGHT@PEIRSONLAW.COM 972.392.7770 ISIGNROOM.COM processes, and therefore maximize profits, so more of them are turning to implementing new technologies to comply with regulations. "Technology is an integral component to one's ability to achieve compliance, and innovative technology allows for a higher degree of accuracy and improved profitability," Badalamenti-Kalas explained. "To meet today's demanding regulatory requirements, servicers and investors demand property information in a timely manner, which requires visibility and transparency into multiple data points throughout the preservation process." Kevin Lombardo, President of Centric Technology Solutions, explained the con- nection between compliance and valua- tions, noting that "using a tool that compels compliance prior to submittal of a valuation report will create more accurate reports at a lower cost in less than half the time. Marrying the agency guidelines with potential investor overlays, along with utilizing independent data to further validate the outcome, will provide stronger valuations and fewer buybacks." In order for a company to be successful, CEO Steve Salimbas noted that technology solutions will play a significant role in compliance management processes, but with new technology companies will incur more costs. "Investing in the right technologies to automate the management of an organization's compliance requirements is mission-critical to not only remain compliant as require - ments change, but provide the most cost effective means to do so," Salimbas explained. "Compliance can easily become a gigantic black hole that consumes an enormous amount of resources. The challenge is that you don't want every company trying to re-invent the wheel and build their own custom in-house solutions. That tends to be an incredibly expensive path to take and typi - cally yields mixed results. And the costs do not stop there." Rose Bogan, SVP, Governance, Risk, and Compliance at Digital Risk, added, "The bal- ance of compliance and running effective pro- cesses can go hand in hand, but this requires a lot of work and that's what we're talking about with the compliance management system. You can be innovative, but I believe it requires that a lot of pieces be in place like technology, and ensuring your change control is in place. And as a result of that, what you'll see is, obviously, the customer experience being a better one." When there's more to do (overwhelming regulatory burden), not enough staff to get it done, and thin margins within the business, Kless says that "it's a ripe opportunity for tech - nology innovation whereby solutions emerge to help us do more with less." The Path Ahead T his year through 2019 is expected to be very compliance heavy with more regula- tory changes to come. According to Taddeo, there will be changes to regulations Z, X, and C as well as the impact of movement in the prime rate and other federal financial agency rules that impact mortgage lending. "Once these rules are effective, with time for the dust to settle, I hope that the industry will be able to refocus energy on innovation and improv - ing the borrower's experience while remaining compliant through standard processes and programming," he added. Bogan believes companies will be solidify - ing their compliance management frame- works by ensuring that they're able to absorb all of the changes that could be made in the regulatory environment and that their processes are buttoned down for that change control. She also noted, "As companies become comfortable with compliance, it actu - ally becomes part of the overall process and embedded in their cultures instead of operat- ing independently, and successful companies will learn to have that balance." From a compliance standpoint, moving forward, the goal is for mortgage companies to continue to stay abreast of developing regulations affecting the mortgage industry. "Continued implementation of quality- control policies aimed at enforcing compli - ance among employees and affiliates, as well as participation in continuing education seminars and the utilization of compliance technology software, will remain at the forefront of the compliance sector in the mortgage industry," Jampedro said. Bien-Aime added, "I think everyone would agree that compliance will never go away and it will continue to be complicated. The presidential election will bring about inevitable change and the mortgage industry will feel the impact or repercussions of those changes." XHEVRIJE WEST is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.

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