Representative Engagements
Auto Finance Review
Review of the auto finance program covering the various elements of the auto loan life cycle, including origination and servicing processes. Such reviews include assessment of the quality of the credit union’s CMS for detecting and preventing violations of Federal regulations applicable to auto loan origination or servicing and identification of credit union practices that increase the risk of harm to consumers. CrossCheck’s reviews incorporate the CFPB’s examination procedures covering the following modules:
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- Credit Union Business Model
- CMS
- Advertising and Marketing
- Application and Origination
- Payment Processing, Account Maintenance, and Optional Products
- Collections, Debt Restructuring, Repossessions, and Accounts in Bankruptcy
- Customer Complaints and Inquiries
- Credit Reporting, Information Sharing, and Privacy
Client Type
Credit Union
Service Type
Independent Compliance Review
CFPB MOU Remediation
After receiving a memorandum of understanding (MOU) from the CFPB, one of the largest independent mortgage originator/servicers engaged CrossCheck – upon CFPB non-objection – to conduct a look-back of several thousand loan modifications made over a two-year period. We reviewed each modification to determine if fees assessed and cash contributions granted as part of the approved loan workout were calculated and disclosed properly to the borrower. Detailed reporting, including identifying refunds to affected borrowers, was provided to the CFPB. As a result, the client was able to meet the CFPB’s requirements in a timely manner.
Client Type
Mortgage Banking – Servicer
Service Type
Compliance Consultation – Issue Remediation
CFPB Readiness Exams
With implementation of the Dodd-Frank Act, mortgage companies became subject to examination by the Consumer Financial Protection Bureau (CFPB). Mortgage originators and servicers alike have engaged CrossCheck to assess their readiness for these examinations. Our approach for the review is based on the CFPB examination guidance and our findings enabled the originator/servicer to remediate issues prior to the exam thereby improving their compliance management system and reducing the potential for regulatory criticism.
Client Type
Mortgage Banking – Originator
Mortgage Banking – Servicer
Service Type
Compliance Consultation
Compliance Management System (CMS)
The unique relationships between an industrial bank and its strategic partners require the bank to maintain its own effective compliance management system (CMS), including a robust vendor management program comprising strong oversight of the operations and the CMS of its strategic partners. CrossCheck has completed reviews of the CMS of both sides of such relationships, ensuring that the bank’s CMS meets the requirements of its regulatory agency, while also tailoring the CMS reviews of the strategic partners to their individual operations using the bank’s overarching CMS guidance. These reviews include transaction testing of a judgmental sample of various loan products for compliance with applicable federal regulations. Products covered include private label credit cards, unsecured personal loans, and small business lending.
Client Type
Industrial Banks
Fintech
Service Type
Independent Compliance Review
Compliance Management Systems (CMS)
As non-depository mortgage entities and fintechs align their internal control structures with the expectations of the CFPB, numerous clients have engaged CrossCheck to perform compliance management system (CMS) assessments of the two interdependent control components of an effective CMS which include:
- Board and Management Oversight; and
- Compliance Program, which includes:
- Policies and procedures;
- Training;
- Monitoring and/or audit; and
- Consumer complaint response
Our approach is based on the CFPB supervisory guidance and industry best practices. Our findings assist the client in strengthening the pillars for a more robust, fully operational and sustainable CMS.
Client Type
Mortgage Banking – Originator
Mortgage Banking – Servicer
Fintech
Service Type
Independent Compliance Review
Compliance Policy and Procedures Development
As the regulatory environment and the requirements imposed on financial institutions continue to evolve, CrossCheck has been engaged by a variety of mortgage entities and community banks to review and enhance compliance related policies and procedures. This has also included the development of required policies that previously did not exist, enabling the client to strengthen the governance and internal controls within the organization.
Client Type
Community Bank (<$1 billion in assets)
Mortgage Banking – Servicer
Service Type
Compliance Consultation
Due Diligence Review of Residential Mortgage Loans
We were engaged by a regional bank to review a sample of loans from three proposed separate bulk whole loan purchases. The bank requested we determine whether the portfolios which were predominately conventional and jumbo loans, were originated in compliance with regulatory requirements. All disclosures required by Regulation Z- Truth-in-Lending and Regulation X – Real Estate Settlement Act, including TRID as well as other compliance requirements such as flood insurance, Private Mortgage Insurance and Higher Priced Mortgages were included. The full review included examination of over 200 regulatory compliance questions per loan file as well as state disclosures for the 34 states within our sample. The weighted average maturity of the loans ranged from 3 months to 24 months. At the conclusion of the review, CrossCheck provided the bank with a summary of findings identifying high, medium and low risks for each loan so the bank could assess acceptable risk levels for each of the bulk whole loans considered for purchase.
Client Type
Regional Bank ($10-$50B in assets)
Service Type
Independent Compliance Review
Foreclosure Management Look-Backs
CrossCheck has executed numerous default management and foreclosure reviews. The objectives for these reviews aligned with the lookback requirements outlined in the Consent Orders issued to the 14 largest loan servicers in 2011. Each review included the requirements set forth by the CFPB related to early Intervention with delinquent borrowers, continuity of contact, loss mitigation procedures, and foreclosure processing. These reviews have kept the clients in compliance with regulatory requirements and allowed the clients to improve their operational controls.
Client Type
Regional Bank ($10 – $50 billion in assets)
Mortgage Banking – Servicer
Service Type
Loss Mitigation
Review of New Products and Services
A fintech company sought consulting services to assist them with a review of its home equity line of credit (“HELOC”) program documents by counsel licensed in 48 states. CrossCheck Compliance utilized its relationships with financial services law firms to source local counsel in each of the states with the expertise to perform the state specific reviews and managed the process including negotiating the services/fees of local counsel on behalf of the client, providing instructions for the reviews, responding to questions, tracking status, deliverables, and managing the invoicing/billing of the client. As a result of this engagement, the client was able to quickly and cost effectively roll out its HELOC program nationwide with a built-in network of legal counsel to support future needs.
Client Type
Fintech
Law Firm
Service Type
Compliance Consultation
Telephone Consumer Protection Act (TCPA) and Fair Debt Collection Practices Act (FDCPA)
Due to the growth of class action TCPA litigation and settlements, the client engaged CrossCheck to perform a targeted review of its debt collection practices with a focus on compliance with TCPA requirements. Our engagement covered the client’s practices as well as the client’s third-party loan servicer and collection agents and included a review of policies and procedures related to FDCPA and TCPA, the client’s internal monitoring of its own collectors as well as the third parties, and specific transaction testing. The transaction testing focused on both written communication (collections letters and notices) related to past-due and charged-off accounts as well as review of recordings of collections calls initiated manually and by predictive auto-dialing equipment. Our approach included an in-depth review of recent TCPA litigation to provide useful recommendations for the client to consider as management strengthens its TCPA policies and procedures.
Client Type
Credit Unions
Service Type
Independent Compliance Review
Training
Clients taking a proactive approach or responding to regulatory finding have engaged CrossCheck to prepare and conduct a variety of training sessions for business lines, senior management, and board committees. Training topics included Home Mortgage Disclosure Act; Community Reinvestment Act requirements; Bank Secrecy/Anti-Money Laundering, and loan servicing rules. As a result of the training, clients have enhanced internal training curriculums and procedural documentation.
Client Type
Community Bank (<$1 billion in assets)
Mortgage Banking – Originator
Mortgage Banking – Servicer
Service Type
Compliance Consultation
Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) and Debt Protection Products
Due to regulatory concerns related to UDAAP compliance, the bank requested CrossCheck assist with a multi-phased review of its administration of debt protection products including a look-back of thousands of customer loans with debt protection originated over several years. We provided a project manager and a team of a dozen consultants.The project manager assisted in developing the methodology to complete the review, trained the review team, provided management reporting, and maintained quality assurance throughout the project. Detailed analysis of each customer’s activity and loan servicing was performed over the life of the loan to identify situations that resulted in customer harm. Recommendations for customer remediation were provided to management. We also provided management with the information it needed to evaluate its practices, and take appropriate corrective action to mitigate any future risk and the potential for consumer harm.
Client Type
Regional Bank – ($10 – $50 billion in assets)
Service Type
Compliance Consultation – Issue Remediation
Website Compliance Review
Continued growth and the ensuing regulatory scrutiny led a large credit union to request a compliance review of its extensive website. CrossCheck focused the review on the advertising provisions of all applicable regulations, including those specific to credit unions, as well as potential UDAAP pitfalls. The review encompassed all pages and all links on the company’s website. The resulting report detailed regulatory findings and recommendations for correction. Of added value in this review is a list of weblinks that were either broken or resulted in an unexpected ‘landing,’ which could cause user frustration and increased complaints. For ease of correction, the report included both the link to the page and a screenshot highlighting the subject of the report comment.
Client Type
Credit Unions
Regional Bank ($10-$50 billion in assets)
Service Type
Independent Compliance Review