February 2017 - Making Millennials Move

TheMReport — News and strategies for the evolving mortgage marketplace.

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58 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T GOVERNMENT THE LATEST Strategic Risk and Compliance Among Banks' Top Concerns Banks are navigating a new environment in which they offer new products and services, embrace new systems, and compete with new entities such as out-of-market banks and fintech companies. T he Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective for fall 2016, which analyzed pertinent data and industry trends using four key components: the operat - ing environment, bank perfor- mance, trends in key risks, and regulatory actions. The biannual report focused on issues that pose threats to the safety and soundness of those financial in - stitutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public, according to the OCC. As the market grows, strategic risk is at an all-time high and financial institutions are mov - ing carefully in order to protect their assets. Strategic risk re- mains a fundamental element of the financial industry, as banks are transforming their current business landscapes and face challenges in increasing revenue. Contingency planning remains an integral component of security as banks adopt innovative products, services, and systems in response to the evolving environment for financial institutions and the introduction of new competitors, such as out-of-market banks and financial technology firms. "Strategic risk remains a key risk for banks of all sizes," Comptroller of the Currency Thomas Curry said. "Banks are adopting more innovative prod - ucts, services, and processes in response to the evolving demands for financial services and the entrance of new competitors, such as out-of-market banks and finan - cial technology firms. In addi- tion, some banks are considering business model changes, including mergers and acquisitions, as they search for acceptable returns in a prolonged environment of low interest rates. And, in some cases, banks face issues with succession and long-term planning." The report also discussed the growing need for compliance constraints in a high-risk environ - ment. Compliance risk remains high as banks continue to manage money laundering risks subject to resource constraints in an increasingly complex risk environ - ment and implement changes to policies and procedures to comply with amended consumer protec- tion requirements, according to the report. The Bank Secrecy Act and Anti-Money Laundering (BSA/AML) are in need of high security, and due to technology and innovation, tight regulations need to be put in place in order to maintain the level of expertise needed to successfully implement security controls. "Compliance must receive the same focus as safety and sound - ness for a bank to succeed, which is why last year we created a new executive-level department dedicated to compliance policy and supervision," Curry said. "By focusing OCC resources on com - pliance, we send a clear message of the importance of compliance and ensure issues are addressed appropriately in each exam to en - sure fair access and fair treatment of consumers and compliance with other applicable laws and regulations like BSA." THE 2017 FIVE STAR DIVERSITY SYMPOSIUM MAY 11, 2017 | FAIRMONT HOTEL | DALLAS, TEXAS We invite all leaders in the mortgage industry to the second annual Five Star Institute Diversity Symposium hosted this Spring in Dallas, Texas. This event will be a day-long gathering featuring keynote addresses, roundtable discussions, and panels covering topics in supply-chain diversity, compliance, Dodd-Frank 342, workforce diversity, and the most pressing diversity issues affecting the industry today. Influence the Industry. Impact Your Business. Join the Conversation. For more information including registration, visit or contact INCLUDING REPRESENTATION FROM: BANK OF AMERICA | BANKUNITED | FANNIE MAE | FEDERAL HOME LOAN BANK OF CHICAGO | FREDDIE MAC | NATIONSTAR MORTGAGE | OCWEN FINANCIAL CORPORATION | U.S. BANK | AND MANY MORE...

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