Regulation is forcing cleaner workflows and massive changes to the way we “used” to do business! It can seem quite overwhelming at times, because numerous required changes are hitting our industry so rapidly. Many are trying to fit the round peg into the proverbial square hole when making business decisions. As most are finding out, this increases costs and reduces profitability through redundancy and manual tasking that could be automated, as well as a lack of communication between business units and a failure to be compliant. No business can sustain this type of dysmorphic behavior for too long.
The main objective is simple — Build a workflow that is compliant, efficient, decreases costs, and increases profit.
Step One: The regulators are concerned about how our industry treats consumers, so you’ll need to start here.
>> What does your company look like to the consumer?
>> Is your message consistent (marketing, social media, LO Pages)?
>> Are consumers receiving accurate information?
>> Is this information being delivered on a timely basis?
>> Are you compliant?
Step Two: In order to accomplish your goals, your systems have to work toward that goal.
Is your data organized, scrubbed, and consistent throughout your two databases of record (PPE/LOS)?
>> Do you have a proper integration for accurate data flow (Push/Pull Integrations)?
>> Can you demonstrate consistent and compliant pricing?
>> Is your LO Compensation being monitored?
>> Do you have the ability to produce historical pricing data electronically?
Step Three: Because compliance flows through every piece of your company workflow, this is an overlay to demonstrate monitoring, in addition to standard workflows. Doing this without the assistance of technology is considered by the experts to be impossible, because regulations overlap into each area of your workflow. Proper technology can remove redundancy.
>> How are you monitoring each piece of the workflow for consumer experience and compliance?
>> How will you be dealing with the intricacies of documentation and timing on TRID?
>> How does each piece of your workflow affect your companies’ Fair Lending and Disparate Impact results?
>> What other workflows do you have to monitor for all additional regulations?
Step Four: At the end of the day, you have to maintain customer service and satisfy the customer so much that they send their friends and family!
>> How do you monitor that your products and pricing are competitive, and keep the clients from going to another lender?
>> How do you ensure that you are meeting customer deadlines?
>> What do you do to ensure that the customer experience was a good one, and how do you manage what needs to be changed based on consumer feedback?
Step Five: And finally the “Piece de resistance” or the prize; how is your company going to continue to make money and do all of this? After all, you are in business to make a profit and these next items are the test of your workflow.
>> Are you maximizing every little basis point when selling your loans to the secondary market?
>> Have you streamlined the workflow to increase both profit and efficiency?
>> Are you avoiding operational mistakes through strong monitoring?
>> Are you perfecting profit potential in all areas?
>> Do your clients sing your accolades?
This is tough stuff, but a little bit of effort in researching solutions, you can quickly get your company where you want and need to be!
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