In an ideal world, every lender would be able to have infinite internal resources to keep up with what seem to be infinite changes, but unfortunately, that is not the case.
By: Reid Smeda
The future of successfully documenting transactions involves creating solutions that bring together content, best practices, processes, and policies that are flexible enough to meet a variety of unique business needs, yet are compliantly strong enough to withstand the stricter requirements posed upon the mortgage industry by the CFPB and other governing bodies within the industry. Sounds daunting, right? Well, as it turns out, it doesn’t have to be.
In order to understand how to document transactions in a less risky and more efficient way, we have to first examine why a new document solution is a necessity. As the majority of professionals in the mortgage industry are aware, there has been (and will continue to be) a rapid influx of new and changing rules and regulations, which, if not adhered to, can result in considerable financial recourse for lenders. As a result, maintaining compliance is more important than ever for financial institutions.
In an ideal world, every lender would be able to have infinite internal resources to keep up with what seem to be infinite changes, but unfortunately, that is not the case. What is happening instead is staff members of these institutions are feeling intense pressure to remain compliant with the often overwhelming compliance burden. Many lenders attempt to maintain an extensive doc library and are forced to spend time updating thousands of individual documents on a case by case basis rather than focusing on growing the business. As a result, they often lose the competitive edge in the industry due to the inability to create custom docs quickly.
Although it’s easy to believe the problem lies in the growing number of rules and regulations, resulting in wasted resources and a higher risk factor for financial loss, it is actually the ways in which financial institutions choose to handle these changes that stir up trouble. Rather than trying frantically to keep up individual documents per regulation update, lenders need to realize that the key lies in the data.
Read the full article here: Recovery Tips – It’s All About the Data