Articles

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.

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.

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.

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.

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?

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?

Published in the November-December 2018 issue of Western Banker, this article addresses the challenges of doing a fair lending review of commercial lending.

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.

Mergers and acquisitions (“M&As”) continue to increase, and compliance personnel play an important role in the process. In the November-December 2018 issue of ABA Bank Compliance, Heidi Wier’s article “Two Days to Perform M&A Due Diligence: What Should Compliance Focus On?” outlines essential compliance considerations for M&As. A strong roadmap that covers as many high-risk areas as possible is imperative to protect your institution from overpaying, costly regulatory delays, or even fines and penalties after the fact.

In the September/October issue of Western Banker, Heidi Wier and Karen Cullen discuss the challenges of operationalizing and controlling UDAAP risk in banking in their article “Operationalizing UDAAP: Building a Strong Foundation to Control Risk”. The complexity arises from a lack of implementing regulations and UDAAP’s broad applicability across various customer experiences, including products, pricing, and marketing. To establish a strong UDAAP foundation, banks should implement clear policies, provide training, foster a customer-centric culture, manage complaints effectively, oversee third-party vendors, and ensure robust monitoring and board oversight. A comprehensive approach to UDAAP compliance will help mitigate risks and ensure fair treatment of consumers.

In the August 2018 issue of ComplianceAction, Mollie Sudhoff discusses “Appraisal Considerations of the EGRRCPA,” highlighting implications of the Economic Growth, Regulatory Relief, and Consumer Protection Act, or “S2155.” This law seeks to relieve certain Dodd-Frank Act provisions while introducing new compliance requirements. Sudhoff stresses the importance of understanding the new appraisal guidelines, including exemptions for rural properties and donated services. While the EGRRCPA aims to ease compliance burdens, accurate appraisals remain essential for sound economic decisions.

In the August 2018 issue of Mortgage Compliance Magazine, Tim McWay and Todd Krell’s article “Mitigating Fraud Risk Through the Loan Life Cycle,” highlights the need for a comprehensive fraud prevention program. With mortgage fraud on the rise, as indicated by increasing reports from CoreLogic and Fannie Mae, the authors identify contributing factors such as a stable economy and a shift from refinancing to higher-risk purchase transactions. They emphasize the importance of fostering a culture of fraud prevention that starts at the application stage and extends through processing and closing.

The July 2018 article “Leveraging Technology to Improve the Accuracy of HMDA Data” by Heidi Wier in Housing Wire addresses the challenges financial institutions face in ensuring accurate Home Mortgage Disclosure Act (HMDA) data. Wier highlights the importance of systemic data integrity reviews, suggesting that technology can enhance accuracy and reduce costly manual file reviews. As regulators increase scrutiny, particularly for 2018 HMDA data, she outlines a multi-step integrity process that includes omissions testing and conflict/error testing. While systemic reviews are not infallible, they allow lenders to efficiently analyze their entire Loan Application Register (LAR), proactively managing risk and maintaining data accuracy to meet regulatory expectations and improve fair lending practices.

The special supplement to Illinois Banker, 2018 Banking Trends: Management and Operations, includes the article “Are You Leaving Money on the Table? – Using Regulation E More Effectively can Reduce Operating Losses,” in which Kelli Schoon-Saxsma and Heidi Wier highlight the potential risks financial institutions face when neglecting Regulation E in the wake of evolving regulations. With the rise of electronic payments, inadequate focus on claims processing can lead to operational losses and compliance challenges. By implementing robust procedures and staff training, banks can not only mitigate errors but also enhance customer service and safeguard the integrity of their HMDA data.

In the Summer 2018 issue of California Mortgage Finance News, Monika McCarthy’s article “State Attorneys General Ramping Up – Are You Ready?” discusses the increased supervision and enforcement by state regulators following a decline in CFPB activity under the Trump Administration. She highlights the significant power of State Attorneys General (AGs) as both legal advisors and law enforcement leaders. With 27 Republican AGs and 22 Democratic AGs, the political landscape can impact regulatory focus. McCarthy emphasizes the importance for lenders to engage with regulators, adapt compliance strategies, and prepare for potential state-level enforcement, particularly regarding consumer protection and fair lending practices.

Karen Cullen’s article in the June 2019 issue of Mortgage Compliance Magazine “Controlling the Narrative – Now is the Time to Understand Your Data” highlights the necessity for financial institutions to understand their Home Mortgage Disclosure Act (HMDA) data in the evolving mortgage landscape. The article encourages evaluating lending demographics, marketing effectiveness, and loan processing times to uncover growth opportunities. Cullen advocates for proactive risk management to mitigate risks while enhancing business development, urging institutions to assess disparities in lending practices and benchmark performance against peers to improve community service and regulatory compliance.

In her “Staffing Up for CMS” article from the March/April 2018 issue of ABA Bank Compliance (now ABA Risk and Compliance), Liza Warner highlights the necessity for financial institutions to evolve their compliance teams to strengthen their Compliance Management System (CMS). Warner outlines the “three lines of defense” model—business lines, risk and compliance, and internal audit—emphasizing the importance of clear roles. She also stresses the need for ongoing training, management support, and a collaborative culture to enhance compliance effectiveness and build trust with customers and regulators.

‘In the February 2018 issue of Mortgage Compliance Magazine, Bill Tyner and Jim Shankle highlight the importance of internal Quality Assurance (QA) and Quality Control (QC) systems in loan servicing in their article “Avoiding Surprises – Servicing Quality Assurance and Quality Control Monitoring Systems can be Management’s Best Friend.” As servicers navigate heightened regulatory scrutiny and competitive pressures, these systems not only ensure compliance with regulatory requirements but also enhance operational efficiency. By distinguishing between QA’s preventive focus and QC’s detective function, the authors advocate for a robust internal control framework that proactively identifies potential issues before they escalate, safeguarding both operational integrity and organizational reputation.

‘Jim Shankle and Liza Warner’s article, “The Mortgage Servicing Rule – Are You Prepared?”, published in the September/October 2017 issue of ABA Bank Compliance (now ABA Risk and Compliance), addresses the implementation challenges of the 2016 Mortgage Servicing Rule. The authors highlight the critical need for servicers to adapt to new requirements, particularly regarding servicing transfers and the management of delinquent loans. They stress the importance of strong organizational strategies, effective training, and quality assurance processes to ensure compliance and protect borrowers from potential harm.

‘In “The Ongoing Challenges of Servicing Transfers,” published in Mortgage Banking Magazine in February 2016, Chris Ortigara and Jim Shankle discuss the critical need for loan servicers to meticulously review their loan-boarding processes to ensure compliance with the CFPB’s mortgage servicing rules. They note that while many servicers are familiar with loss mitigation rules, challenges persist in documenting and implementing all aspects of their policies. Drawing on the CFPB’s Supervisory Highlights, the authors stress the importance of actively reviewing these updates to address common industry shortcomings.