Mortgage Compliance Program: A Strategic Function
In the finance industry today, a comprehensive mortgage compliance program is essential, but it is often a challenge operationally. Effective mortgage compliance has many layers within an organization. It is managed daily at the senior management level and integrated throughout the company’s day-to-day activities as a strategic function of the company.
The Code of Federal Regulations (CFR) is constantly changing or being amended, requiring resources to keep abreast of how the amendments affect an organization in order to stay compliant. For most companies, these constant changes provide internal challenges to their operational compliance strategies. Mortgage originators need to comply while operating profitably within the regulatory landscape.
Because each individual loan requires that the mortgage lender’s sales, operations, and legal teams work together in order to close it successfully, having a well-established compliance protocol is essential to maintaining current standards throughout the process. These standards are firmly established at the government level — but they also continue to evolve as regulations change.
Many organizations use a compliance management system (CMS) to execute oversight, implementation, and audit workflow internally. However, even if your organization uses a CMS, there are still many additional parts of a thorough internal mortgage compliance program. Having a compliance committee to head up the operational infrastructure is important. And organizations need to define and address:
- Policies and procedures
- Training on regulations
- Interdepartment implementation
- Auditing policies and procedures
- Assessing risk/potential liabilities
- QA processes and resolutions
- Complaint management
- Compliance reporting
Organizations do not always have the internal resources, regulatory knowledge, or bandwidth to handle all aspects of operational compliance. Partnering with Baer Reed can help your organization stay compliant with the Code of Federal Regulations, loan disclosure requirements, and government loan programs — including the Federal National Mortgage Association (FNMA, “Fannie Mae”), U.S. Federal Housing Administration (FHA), and Federal Home Loan Mortgage Corporation (FHLMC, “Freddie Mac”). Contact us today to discuss how our mortgage compliance and operational services can assist.
- On August 1, 2018
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