With both increasing and evolving regulatory demands, mortgage banks and brokers will often decide to expend numerous resources that increase operational costs 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.
Over $25.8 Billion*
In monetary fines, penalties, or borrower restitution was ordered or improper mortgage lending practices Q4 ‘16-Q4 ‘17
In monetary fines, penalties, or borrower restitution in Q4 2017 alone
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.
- On October 16, 2018
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