Mortgage Lending Compliance-United States
The US Mortgage Lending industry is the largest globally, and it continues to grow even after the impact of the pandemic. Mortgage lending companies have many federal, and state laws and regulations by DOJ, FEMA, FFEO, Freddie Mac, Fannie Mae to comply with.
Importance of Mortgage Lending Compliance
Mortgage lending is an integral part of the US finance sector, and mortgage compliance is a necessity for its success. Hence, it’s important that mortgage lenders conduct due diligence, assess risks, and comply with regulations.
The Biggest Compliance Challenges to Mortgage Lending
Regulatory compliance touches every facet of the mortgage lending business. Compliance management is a complex, time-consuming and tedious process. The complexity may arise for various reasons. Some of them are:
- Failure to track regulatory changes
- Cyber security and data security risks
- Not being inability to track and assess compliance operations
- Missing out on risk identification and timely response
- Mis-management of customer data and information
- Fraud and money laundering risk
Consequences of Non-compliance in Mortgage Lending
Monetary fines as high as 25 million USD
Cancellation of business licenses and funding
Legal repercussions leading to business suspension
Stay Ahead of Mortgage Compliance Issues
The US mortgage industry needs to comply with regulations framed by various federal and state regulatory bodies. Regulations can be many; mortgage lenders are expected to execute mortgage compliance programs to meet the corporate compliance CMS standards, minimize financial institutions’ risk, improve the lending process and earn the trust of borrowers.
Well Written Lending Policies and Processes
Identify and clearly define all the mortgage rules and regulations for the organization to follow. Define the regulatory frameworks and work efficiently. Communicate the do’s and don’t’s with all the stakeholders.
Periodic Lending Risk Assessment and Change Management
The lending process is highly dynamic and fraud risk intensive. Ensure your organization can identify all the related risks on time and plan the mitigation process accordingly.
Tightened Processes, Controls, and Oversight
Setup or import frameworks and identify controls required for meeting standards. Whether you are originating conventional loans or government loans, establish controls, bring in oversight, and execute internal audits.
Prevention of Cyber Threats
The lending process is highly dynamic and fraud risk intensive. Ensure your organization can identify all the related risks on time and plan the mitigation process accordingly.
How VComply helps in Mortgage Lending Compliance?
VComply is a leading cloud-based GRC platform that helps streamline organizations’ compliance and risk management programs with a strong focus on collaboration. VComply helps you with:
Compliance Process & Task Design
- Setup or import frameworks and controls, and identify tasks required for meeting standards
- Establish compliance task library to map obligations to controls
- Create tasks that correspond to controls that address risks
- Designate compliance tasks to stakeholders, continuously monitor performance
Centralized Platform
- Bring various functions, departments, teams, locations on to a single collaborative platform
- Automate compliance tasks and activities
- Draft & distribute policies through a centralized interface
- Measure compliance posture, track activities, collect evidence
Compliance Risk Management
- Define a plan for risk management and communication across the team
- Define the corrective action planning for crisis management
- Proactively create risk mitigation plans and automate the processes
- Provide real-time insights into risk status with dynamic dashboards
Compliance Report
- Track the status of compliance tasks in real time
- Automatically generate compliance reports that provide a 360-degree view of the compliance posture
- Drill down to analytical details with compliance status, findings, and performance
- Proactively plan and stay prepared for future compliance requirements
