CFPB: Fixing both is a Priority or a Paradigm of Stress

When reading the banking news you can’t help but find the word mortgage, regulation Z, Compliance, lacking, and all other standards that are being addressed and or ripped apart for the sake of Dodd Frank.  In turn, this has bankers or any company that services money pulling their hair out in a rate that has wig company’s needing a regulatory agency to monitor their profits.  All jokes aside this January change is real and not going away.

While reading the article “CFPB report finds mortgage servicing problems, lack of internal compliance controls” which was published by The Bank Credit News the 26^th I bought stocks in those wig and gray hair coloring companies, took a step back and thought of main areas of concern and ways to approach them.

First off, not all mortgage or banking services company had to handle the tax and insurance payments so understandably, you can see from where the problem came.  Although this is not all true when concerning banks, did they have case management system in place to track and hold others liable for the work done or the lack thereof?  I am assuming if they did it was a spread sheet that sat on a shared server waiting to be updated.  Today, we have Case Management Software that tracks the progress of investigations and can map these to all applicable regulations.  Should something of this nature be in place you would see the fines that have been rising on the consumer side fall drastically, which in turn keeps your clients in your bank coming back for more loans.

The next main point is the sleepless nights not caused by your three year old mattress, which you paid three thousand dollars for because, at the time, you blamed the lack of sleep on your old mattress.  The main factor causing that lack of sleep was the stress of your next examination at your financial institution.  I then went out and bought stock in a (I cannot disclose) mattress company all BUT to find out that taking corrective action can be done with a Regulatory Compliance Software.  YES, a shameless plug, however, after working in this field for many years, I feel having a GRC that ties all regulatory needs in to one automated place, will eliminate the margin of error greatly due to having all the main compliance and audit factors mapped to the regulations that cause this stress.

I leave you with the CFPB’s director’s quote: “ Today’s report highlights both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are following federal law.  Fixing both is a priority for us.”