Tracey Levandoski authored this informative article published in the May/June 2021 issues of ABA Bank Compliance. Enforcement actions for UDAAP violations are likely to increase, and UDAAP risk should be on the minds of every bank’s marketing manager. Supervisory highlights from the CFPB include references to misleading advertisements of bonus offers on deposit accounts, misleading representation about the ability to apply for a loan online, and false representations that no credit check will be conducted on loan applicants. When examiners review the bank’s UDAAP risk as part of compliance examinations, you will need to explain to examiners, with supporting documentation, how UDAAP risk has been mitigated. Now is the time to review the bank’s marketing and advertising plans, including policies and procedures, with an eye to potential UDAAP pitfalls.
Analyzing Complaints – How to Understand Your Bank’s Complaint Data
In the January/February 2021 issue of ABA Bank Compliance, Liza Warner provides insight into how a bank can use the results of the March 2020 Consumer Financial Protection Bureau (CFPB) Consumer Response Annual Report as a reference point to analyze its own complaints. In 2019, the period covered by this report, there were over 350,000 complaints received. By comparing the CFPB complaint data with its own data, the bank can start to identify patterns, trends, and findings that warrant reporting to key stakeholders including business line management, risk management, compliance, senior management, and the Board of Directors. Gain insight into the top five complaint areas in this informative article.
Managing Consumer Complaints for Compliance Professionals – New MBA Resource
If you are looking for more information about implementing a consumer complaint response process, there is a new resource available through the MBA’s education program. Managing Consumer Complaints for Compliance Professionals, is a new course that Heidi Wier worked on with the MBA. This course presents foundational concepts to help companies improve their consumer complaint… Read more »
Combating Current Legal Threats – Tips for Mortgage Lenders and Servicers
In the Fall 2020 issue of California Mortgage Finance News, Monika McCarthy authored an article entitled, Combating Current Legal Threats, Tips for Mortgage Lenders and Servicers. She addresses three key threats that have emerged since the pandemic that impact California mortgage lenders and servicers: 1) fair servicing issues, 2) fair lending issues, and 3) the unknown effect of the revamped Department of Business Oversight, now the Department of Financial Protection and Innovation.
Mitigating Risks of Banking Money Service Businesses – Building an Appropriate BSA/AML/OFAC Compliance Program
In the November/December issue of ABA Bank Compliance, Jim Treacy addresses how banks can build an appropriate BSA/AML/OFAC Compliance Program. Jim covers performing an enterprise-wide BSA/AML/OFAC risk assessment, as well as developing a customer risk profile for each individual money service business (MSB). He also describes ongoing monitoring of MSB customers and MSB red flags that raise potential concerns. Although banking MSB customers comes with BSA/AML risks, these risks can be managed through a strong and effective BSA/AML/OFAC Program.
Best Practices for Choosing a Fintech Lending Partner
In this article, published in the Utah Banker, Tracey Levandoski discusses the risks to consider and the decisions to be made as banks accelerate their digital strategies through partnerships with fintech lenders. In addition to reviewing the regulatory guidance for managing third-party risk, she addresses the evaluation process in terms of lending experience and expertise as well as regulatory compliance considerations such as the fintech’s CMS. Other topics include evaluation of the fintech’s credit model, the use of alternative data, and considerations for marketing and advertising.
Avoiding Surprises in Mortgage Servicing
In the September/October issue of ABA Bank Compliance, the authors address the importance of establishing internal monitoring systems for servicing. The article includes a comparison of quality assurance and quality control as well as considerations for reporting results and exceptions, the regulatory change control process for servicing, servicing transfers and loan boarding, and managing consumer complaints. Eliminating the surprise element related to regulatory, legal, financial, and reputational risks benefits the servicer and demonstrates a strong commitment for maintaining an effective internal control system.
Choosing Your Fintech Mortgage Partner Wisely – Vendor Management: Best Practices in a World of Numerous Options
In this article, published in the Summer 2020 issue of ACUMA Pipeline, Patti Katzban and Liza Warner discuss the best practices for credit unions in vetting financial technology partners (fintechs) to optimize the overall mortgage experience. There are many risks to consider and decisions to be made. Learn more about the key considerations from these knowledgeable experts.
Monitoring in the Time of COVID-19 – Keeping Pace with Change
In the July/August issue of ABA Bank Compliance, Mollie Newsome Sudhoff discusses compliance monitoring in the time of COVID-19. Learn more about the best practices in keeping pace with change, especially in some of the key impact areas.
How to Audit Compliance Effectively
In the July/August issue of ABA Bank Compliance, Heidi Wier discusses how auditors can partner with compliance, while still maintaining independence, ease the impact of ongoing regulatory changes and emerging issues such as COVID-19, increase audit effectiveness and add additional value to the organization.
How to Help Your Fintech Partners Develop a Compliance Roadmap
In this article published in the May/June 2020 issue of ABA Bank Compliance, Tracey Levandoski, CRCM, describes how banks can help their fintech partners develop an effective path to building a compliance infrastructure. She addresses the various points of the “journey” to the destination of a fully functional compliance management system (CMS) that meets the regulators’s requirements as well as the bank’s expectations under its third-party risk management program.
Fair Lending Audit – Seeing the Forest for the Trees
In this new ABA Bank Compliance article, Fair Lending Audit – Seeing the Forest for the Trees, Liza Warner discusses how a fair lending internal audit helps an institution gain a clear and objective understanding of fair lending compliance risk. As a key area of regulatory scrutiny, and one that garners a lot of public attention, financial institutions must proactively manage fair lending risk exposure. This can be challenging because the requirements and principles touch all aspects of the lending process and require attention, not just to the trees – the technical regulatory details, processes, systems, and data, but to the forest – the attitudes, behaviors, and actions of its employees.
Health Check of Your Fair Lending Program – Connecting Risk Assessment and Performance Analysis
Published in Western Banker, this article addresses how strong compliance programs effectively navigate the challenging environment of fair lending compliance. This informative article describes how the key ingredient to success is establishing a connection between risk assessment and performance analysis.
How to Maintain Fair and Responsible Servicing Practices
The cover story of the July-August issue of ABA Bank Compliance magazine, How to Maintain Fair and Responsible Servicing Practices, was co-authored by Liza Warner and Karen Cullen. In this article, the authors address how compliance officers can guide their organizations in successfully navigating an evolving compliance landscape by identifying and mitigating compliance risk in all aspects of account servicing, including fair lending and UDAAP. Weaving regulatory requirements throughout the servicing process will enhance service quality and make sure the organization exceeds customer expectations, differentiates itself in the marketplace and avoids regulatory land mines.
We are Change Leaders – Adapting and Advancing in the Evolving Financial Services Landscape
The cover story of the 2019 May-June issue of ABA Bank Compliance was written by Liza Warner. The article is about adapting and advancing in the evolving financial services landscape. She covers the role that compliance officers play in supporting banks’ strategic goals through change management and provides a framework for how compliance professionals can manage change effectively. The article includes an overview of managing change, both for new or changing products and services, and outlines change management success factors.
Understand Where Your Data and Programs Meet to Control Risk
Published in the April 19, 2019 issue of Compliance Action, this article addresses lessons learned from past fair lending consent orders. Adequate fair lending risk management requires not only awareness of potential fair lending risk, but an understanding of how that risk is affected by the institution’s programs and how those programs are executed. Only then can adequate controls be developed to mitigate the risk and monitoring be developed to gauge the effectiveness of those controls.
Mindset Matters: Are You Set Up for Quality Control Success?
Published in the April 2019 issue of Mortgage Compliance Magazine, this article discusses how decreasing volumes and shifts toward new products have led to a new mindset regarding quality control. How do lenders who are successful with quality control adopt strategies that not only keep them compliant with investor, warehouse lender and regulatory requirements, but also lower costs, improve loan quality, and provide for competitive advantage by allowing them to more rapidly add new products?
Ensuring Quality Originations – Is It Time to Review Your Quality Assurance Program and Quality Control Plan?
In the Winter 2019 issue of ACUMA Pipeline, Todd Krell provides insights for credit unions to the question – Is It Time to Review Your Quality Assurance Program and Your Quality Control Plan?
Fair Lending for Commercial Loans – Within the Sight Lines of the Regulators
Published in the November-December 2018 issue of Western Banker, this article addresses the challenges of doing a fair lending review of commercial lending.
The Future is Digital Mortgages – Are You Choosing Your Fintech Partner Wisely?
In the winter issue of California Mortgage Finance News, Liza Warner and Monika McCarthy address the considerations lenders face when reviewing the options for partnering with fintechs. Finding the right fintech solution partner and implementing compliance protocols and best practices to mitigate risks is a win-win for consumers, lenders, technology innovators, investors, and the industry as a whole.