MReport March 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 34 of 70

TH E M R EP O RT | 33 FEATURE operating through the cloud, software can be seamlessly updated as soon as newer, safer versions are available. IT teams can address other technical needs while lenders can con - tinue business as usual with little interruption. Keeping Pace With Regulators E nhanced security is not the only benefit from automatic updates. Matching the pace of the ever-changing regulatory land- scape is possible through cloud-based CMSs. A single mortgage loan may include mul- tiple different documents totaling upward of 100 pages. When an updated regulation comes into effect, its corresponding docu- ment may become obsolete. With updates made daily to legislation and published regulations, keeping documents accurate is a constant challenge. A comprehensive CMS ecosystem monitors all information related to its products. As new and updated regulations are published and became effective, those changes are inte - grated into the technology, from documents to edit checks. The same goes for regulatory updates and submission requirements. By setting up documents and processes to be accurate at the front-end, the result is likely to reflect a higher standard of quality. While the updates themselves are auto - matic, CMS providers typically monitor the CFPB and other federal regulators through a dedicated team of compliance and regulatory experts made up of industry veterans from financial services, regulation enforcement, and law and policy. These teams are built to offload the cost for lenders of managing the same function in-house. The burden of checkers checking checkers, which often result in human errors, is removed by delegating that process to the consistent and thoroughly tested algorithms of a CMS platform. As a result, lenders can shift their focus from monitoring regulations to strategic business goals instead. The value of a CMS platform is not simply in its quality guarantee, but also in its ROI potential. By increasing employee productivity, decreasing staff overhead, and preventing eventual compliance fines, it quickly pays for itself over and over again. Regulator Approved C MS platforms are improving the financial services industry from top to bottom, and inside out. Not only can institutions keep up with directives from the govern - ment, but also internal policies and proce- dures are easier to manage, and external reporting is more accurate when funneled through digital and cloud-based platforms. The federal government wants in, too. At a recent regtech conference in Washington, D.C., panelists from the Office of the Comptroller of the Currency, the Commodity Futures Trading Commission, and the U.S. Treasury Department en - couraged innovators and technologists to exchange knowledge with regulators for the benefit of both parties. One of these dual proposition benefits is the impact technology has on the culture of a company. For institutions, being account - able to the system requires integrity from the outset. On the flipside, when regulators see a company adopt new systems to solve compli- ance challenges, it shows a good-faith effort to improve internal processes and data quality. Regulatory agencies recognize the advantages of fintech innovation as a tool for making oversight and compliance more efficient and effective. By opening pathways for conversation and idea cross-pollination, regulators and institutions can become part - ners in the quest to achieve compliance. Looking Ahead to Achieve Compliance M oving to cloud-based solutions is inevitable for financial institutions. It is safer, more efficient, cost-effective, and embraced by regulators. As consumer financial lending contin - ues to become a pivotal force in economic growth across the country, technology provides the tools and pathways to im- proved fair lending practices, better customer service, and even new markets. The key to success? Tackling potential security risks head on and investing in the right technology solutions. It is time to adapt to the next age of com - pliance and digital mortgage. MICHAEL L . RIDDLE , president of MRGDocs, has more than 40 years' experience providing advice and legal counsel concerning regulatory compliance, enforcement, and litigation to banks, mortgage lenders, insurers, and related financial service entities. He is a member of the Texas Bar, the Dallas Bar, and the American Bar Association, and is admitted to practice before the federal courts in the Northern District of Texas and before the Supreme Court of the United States. Riddle oversees the MRGDocs compliant disclosure and documentation systems provided by Asurity Technologies.

Articles in this issue

Links on this page

Archives of this issue

view archives of TheMReport - MReport March 2018