Servicing faces more regulatory scrutiny than any other segment of the mortgage business, said Scott Samlin, partner and co-leader of Alston & Bird’s Consumer Finance Regulatory Compliance team. Establishing strong compliance and audit programs “can be a real differentiator out there in the market and can help the strong servicer actually save money.”
While a servicer’s main objective was once speed, compliance has taken the driver’s seat now that regulators have become more involved. And soon, said Samlin, states may have even more stringent regulations than the federal Consumer Financial Protection Bureau.
When putting together a compliance management system, companies can start by eliminating duplicative work and coordinating departments.
Another place to start is training. Simply buying a standard curriculum isn’t enough – servicers should spend the money and customize the program and make sure it evolves, said Samlin. Best practices should also be woven into the compliance plan.
While a servicer’s main objective was once speed, compliance has taken the driver’s seat now that regulators have become more involved. And soon, said Samlin, states may have even more stringent regulations than the federal Consumer Financial Protection Bureau.
When putting together a compliance management system, companies can start by eliminating duplicative work and coordinating departments.
Another place to start is training. Simply buying a standard curriculum isn’t enough – servicers should spend the money and customize the program and make sure it evolves, said Samlin. Best practices should also be woven into the compliance plan.