The CFPB has re-engineered the way an exam is performed; especially as it relates to mortgage bankers. So it might be important to ask yourself this. If they have changed the game then doesn’t it make sense that you have to do the same? Big changes and re-engineering will be needed internally, to satisfy their demands of our industry.
Manufacturing a Mortgage vs. Doing Mortgages Has Multiple Objectives:
1. It breaks the “this is how we have always done it”; because this mentality will not fly in today’s regulatory environment.
2. Your efficiency Increases.
3. Your profit margins increase.
4. Employee Attrition drops.
5. Customer Attrition drops.
6. Critical Fails are quickly discovered and corrected.
7. You no longer have to fear, or corral the entire staff to prepare for an exam!
How does this thinking affect your relationship with the Regulator?
1. It allows you to be the “good” example and not the “don’t do this” example.
2. It demonstrates your commitment to the consumer and their needs.
3. It demonstrates how well you are run and organized (as per the CFPB requirements), to catch mistakes and correct them.
As I progress through this series you will see how the regulator expectations for our business align perfectly with the systems we need in place to manufacture a mortgage. I will bet that not one of you wants to be the poster child for the next lesson taught to us by the CFPB. I will also bet that you would like to control your business more and watch your bottom line grow.
Virtually all of the principles I will ask you to consider run parallel to “what a good lender does” in the eyes of the CFPB. So when they say “compliance management system”, I will work that parallel into the 3 components of Policy, Training, and Monitoring. Yet I will take that one step further to discuss how to plan it, roll it out, check it out, fix it and monitor it!
Stay Tuned! And Welcome to the World of Manufacturing!
