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Compliance and quality-control functions in the mortgage banking industry - Cover Story
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Strategic compliance.
Using a compliance risk-assessment model can diminish the risk of liability for a mortgage banker.
Such an approach can help lenders and servicers avoid the traps of some of the most challenging regulatory minefields. The financial services industry has traditionally approached an organization's compliance and quality-control functions as necessary evils. These functions are commonly viewed as part of the overall cost of doing business, necessitated by Congress, by state and federal government supervisory agencies and, increasingly, by consumer groups and the trial lawyers' bar. As a compliance attorney for the mortgage banking industry, and as a former thrift regulator, my view of these functions challenges the popular notion of them. This article serves as an illustration of what I believe to be true: Compliance and quality-control functions are profit centers, grounded in an organization's effective risk-management program. Inco...See the full content of this document
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