When guests visit, it is usually considered common courtesy to clean up the house prior to their arrival. And when the Consumer Financial Protection Bureau (CFPB) comes over, it isn’t a social call—it’s often a critique of your housekeeping. If you want your financial institution to be considered suitably welcoming for clients, then you want to suitably welcome any and all regulatory bodies.
Here Are Some CFPB House-Cleaning Tips:
1) Be proactive
Under the new RESPA rule, the CFPB will not hesitate to levy fines for kickbacks and unearned fees. According to this Mortgage Compliance Magazine article, two banker offices in Texas had to pay almost $20,000 for “free tours in exchange for referral business.” which is in violation of Section 8 of RESPA.”
Scour your policies and practices. Waiting for “stains” to appear is tantamount to waiting for a reputational disaster.
2) Monitor third parties
Keeping tabs on all of the entities you partner with can be a tremendous amount of work. However, regulators aren’t going to give you a free pass for trying.
3) Consider partnerships
If this sounds too overwhelming to finish before July of this year, you might want to consider partnering with a compliance solution team. ATS Secured has been quoted as creating a “new technology category” that can partner with your existing software. Not only does ATS Secured software help financial institutions meet compliance needs, it streamlines the mortgage process into a coherent and collaborative structure.
The CFPB is coming over. Is your financial “house” welcoming and ready for visitors?
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