As an independent mortgage professional, it can be difficult to manage and understand all of the requirements that are needed in the complicated CFPB environment. If you have questions about these requirements, there are a few places that you can turn to get the information that you need.
Don’t Make This Mistake
One of the biggest mistakes that the industry is seeing is brokers who are deciding that they aren’t going to understand the new rules or make any changes. These mortgage brokers are completely ignoring the new CFPB mandates, with the hope that their business won’t have any inquiries or examinations.
Instead of making the mistake of ignoring the things that brokers need to do, it is better for mortgage brokers to be informed about these mandates, so they can be sure they are maintaining compliance at all times.
CFPB Requirements
Our goal is to stay up to date with the newest information in the mortgage industry, so that we can help keep mortgage brokers and correspondent partners informed as well. We have studied the CFPB requirements, so that we can help all business partners be in compliance.
The main change with the new requirements is that brokers must develop a Compliance Management System (CMA) and implement that system within their business. This system helps brokers maintain a culture of compliance, which involves testing and training, as well as policies and procedures.
It used to be that brokers could hand the examiner an old, dusty notebook that contains the procedures and policies. But, now the process requires that these policies and procedures are treated in an ongoing system to change and improve them as needed. If an examiner is looking at a mortgage brokerage company, they will be asking questions to the mortgage originators about their familiarity with the current policies and procedures that are in place.
In addition, mortgage brokers need to make a more extensive effort to be sure that they are in compliance. In fact, it might be a good idea to pay for the services of a risk management system. Most mortgage brokers don’t like the idea of paying for risk management, but they should consider it as if it’s another utility bill that is needed to be paid each month.
Setting Yourself Up for Success
One of the best things that brokers can do for their business is to make sure they are staying connected with experts who can help keep them informed of the requirements for compliance. When brokers have an expert they can trust, they then have a good resource who can help answer their questions along the way.
As a wholesale and correspondent lender, our goal is to be the expert that provides mortgage brokers, loan originators, and correspondent partners with the information that is needed during the normal process of doing business. We can help mortgage professionals stay ahead of the trends in the mortgage and housing industry. You can also obtain easy access to information about mortgage programs and industry news at DaveKevelighan.com. Learn more by reading through the information here on my website, or by calling me directly at (303) 520-0004.
