I’ll admit it. I’m not very good at remembering peoples’ names. I’ve tried different techniques to help me resolve this issue, sometimes with unfavorable results.
The association method, for example, is when you compare an attribute of the person you just met to their name. However, when it is an unflattering comparison such as “His name is Mason . . . he always has a tortured expression, like I’ve sprayed him with mace,” it can backfire. For example, if I accidentally call him Mace, it can lead to awkward questions.
In the mortgage closing industry, this problem is taken to a whole new level.
Mortgage Banking Vendor Management
The Consumer Finance Protection Bureau (CFPB) has informed banks that they need to organize their critical vendors and manage the risk that comes along with having them. This task doesn’t seem to be a complicated one except when you remember that large banks can have upwards of fifty thousand third parties! Many of these third parties are companies comprised of hundreds or thousands of individuals, adding another level of complexity to the process.
Keeping track of all of these vendors can be incredibly overwhelming, especially when any one of them could represent a possible risk. However, the regulators haven’t given much feedback in the way of an answer to this problem, they have simply stated that financial institutions should be responsible for who they are involved with.
Lack of Communication Systems in Banking
Currently, many of the banks’ systems for managing third party vendors don’t always fulfill the CFPB’s requirements. This is because most banks have different platforms and cannot communicate with their vendors virtually. This is a problem because the CFPB has mandated that banks not only need to know their vendors, but also monitor their actions. As a result, keeping tabs on vendors is next to impossible due to a lack of transparency.
Solving this issue goes beyond avoiding awkward situations. The CFPB is known for following through on its admonitions—and the fines can be steep.
What kind of techniques do you think might enable banks to manage their vendors in a more secure manner?
Perhaps it would help to have a process that tracks exactly what our relationship is with a third party and also monitors it efficiently .
The industry needs an answer like this—and soon.
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