With both increasing and evolving regulatory demands, banks and brokers will often expend numerous resources to keep up with the changes, and this can increase operational costs often putting organizations over budget. The consequences for compliance-related penalties and fines can cost an organization severely. Because of the regulatory complexities and expertise required to stay compliant, organizations often need to find compliance solutions to manage these escalating costs.
| [alert title=”Over $25.8 Billion*” style=”warning”]In monetary fines, penalties, or borrower restitution was ordered or improper mortgage lending practices Q4 ‘16-Q4 ‘17[/alert] | [alert title=”$192.7 Million*” style=”warning”]In monetary fines, penalties, or borrower restitution in Q4 2017 alone[/alert] |
*https://www.navigant.com/-/media/www/site/insights/financial-services/2018/bicm_enforcementactiontrackerq42017.pdf
Internal Compliance Solutions vs. Outsourced Compliance Solutions
Internal technology solutions are often employed as a means to structure and track internal compliance programs. As with any technology integration, this requires that significant resources (both financial and staffl) be put behind developing, implementing, and maintaining the systems. Utilizing a compliance management system can be a great tool, but it isn’t a complete and hands-off solution — it requires an ongoing commitment that must be managed by the internal IT, legal, and operations departments.
Mortgage organizations often find that after implementing an internal program, they still do not have the capacity to handle day-to-day compliance tasks, and that the costs to maintain these solutions are rising. Bringing on a mortgage compliance outsource partner who is a regulatory expert and can work with your internal systems, operational structure, and/or third-party technology solutions can help manage the rising costs associated with daily management and:
- Provide access to subject matter experts.
- Compile compliance data/reporting.
- Evaluate compliance efforts.
- Analyze compliance operations.
- Test / monitor systems and processes.
- Achieve process gains in efficiency and quality.
- Scale resources as needed.
- Execute compliance processes.
- Minimize internal resource strain.
- Reduce program expenses.
By freeing up these various internal resources, mortgage banks and brokers can maintain focus on their core business strategies and bottom-line sales growth. If you are considering a mortgage compliance partner, Baer Reed’s expert team can help create operational and cost efficiencies for your organization. Talk to a team member today.
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Mr. Reyes graduated with honors from the Ateneo de Manila University, where he received the Procter and Gamble Student Excellence Award. He obtained his Juris Doctor degree from the Ateneo de Manila School of Law. During law school, Mr. Reyes was part of the Philippine delegation to the Willem C. Vis International Commercial Arbitration Moot held in Vienna, Austria. He was also a member of the Ateneo Society of International Law and the St. Thomas More Debate Society. He completed his internship at the Public Attorney’s Office. He wrote a thesis entitled: “To Kill A White Elephant: An Analysis of the Fiduciary Exception to the Corporate Attorney-Client Privilege”. Mr. Reyes is admitted to practice law in the Philippines and the State of New York.
Ms. Lardizabal-Manzano is a graduate of San Sebastian College-Recoletos, where she earned her B.A. in Political Science. In 2003, she received her law degree from Lyceum of the Philippines and was admitted to practice law in 2004.
Matthew Hersh earned a B.A. in Political Science from Columbia University in 1990 and graduated cum laude from Georgetown University Law Center in 1999. He also holds a master’s degree in international relations from the Georgetown University School of Foreign Service.
Cap. Avi Levak (Res. IDF) graduated from from Israel’s prestigious Ben-Gurion University of the Negev with a Bachelor of Science in Computer Science and Mathematics. He is also a Leadership and Communication coach trained in TuT coaching by Alon gal in Israel. Avi specializes in high-level, in-depth analysis of business and client needs, within systems and software strategy and architecture.
Ms. Tyler graduated cum laude from Georgetown University and received her law degree, cum laude, from Georgetown University Law Center. During law school, she interned at the United Nations Economic Commission for Europe. She also worked on The Tax Lawyer journal and was a member of the award-winning Barristers’ Council Mock Trial Team. Ms. Tyler is admitted to practice law in the State of California and the District of Columbia.
Ms. Cruz-Anonuevo graduated cum laude and top nine in her batch from Miriam College with a degree of Bachelor of Arts in InternationalStudies. She obtained her Juris Doctor degree from Ateneo de Manila University School of Law in Rockwell. During law school, she interned in Rivera, Santos, Maranan & Associates. She was also part of Ateneo’s Labor Law Bar Operations. She wrote her thesis on, “Stealing Privacy: Limitations on Media’s Photographic Invasion.,” Ms. Cruz-Anonuevo is admitted to practice law in the Philippines.
Ms. Aquino-Batallones obtained a Bachelor of Arts degree in Development Studies (with Minors in Global Politics and Hispanic Studies) from the Ateneo de Manila University. In 2011, she received her Juris Doctor degree from Ateneo de Manila University School of Law. During law school, she interned at Romulo Mabanta Buenaventura Sayoc & de los Angeles then became an intern of Ateneo Legal Services Center’s Clinical Legal Education Program.
Mr. De Guzman graduated from San Beda College with a degree of Bachelor of Arts Major in Economics and received his law degree from San Beda College of Law. He is multilingual and is fluent in three languages: Chinese, Filipino, and English. He was admitted to the Philippine Bar in 2003.