Why Mortgage Lenders Company Not Implementing
an Integrated Risk, Information, Compliance and
Audit Management System
The Challenge
A challenge for the for the Mortgage Organization Board, Executives and Risk, Information, Compliance and Audit Professionals
- In the mortgage services industry, calculated risks have to be taken every day to run an organization, but most organization fail to monitor and manage risk effectively because mortgage firms fail to implement systems to get federated view of the risk. A cavalier and silo approach to risk-taking is a result of a poorly defined leadership and risk culture. It results in disaster, regulatory scrutiny, demise of organization and can potentially become a case study for future generations to come on how poor risk management software leads to the demise of corporations
- In a typical mortgage firm, risk and compliance monitoring is primarily geared towards programmatic metrics such as: exam violations, MRAs, and training exceptions. They use multiple platforms and adopt a silo approach further cementing the silo culture which can be driven through either having legacy systems, not being aware of the integrated GRC tools or it could be driven by “egos of being resistance to change”. Nonetheless, unless the organization shifts the culture that we are going to break down the silos between Governance, Risk, Information, Compliance , Audit functions and foster a culture of tighter communication between each functional departments and ensure visibility of risk and compliance metrics across all of the functions through a single platform, it will never achieve optimal efficiency nor enterprise excellence – Now a movement like that can only be achieved from the commitment from the CE0, Board or the leadership otherwise it is not happening
- Mortgage lending is probably the most complex out of all of the consumer lending industry segment. It will be critical for risk, compliance, and audit executives to not only be on top of the rapid transformation that will be taking place at their organization but also ask themselves the question are the modernizing their systems internally at the rate of change in the regulations and enforcement. In order to stay competitive, provide exceptional service and increase quality, mortgage lenders have to balance their focus from growing their portfolio to investing in integrated governance, risk, information, compliance and audit management software to reduce their cost and increase margins.
The Solution
- For some mortgage organizations, risk and Compliance Management Software is only an expanded view of routine financial controls and is nothing more identifying internal controls with some heat maps and ability to pull some reports – that does NOT truly provide an enterprise view of risk. Risk is pervasive throughout the entire organization. There are variety of departments such as HMDA, CRA, cyber security and legal to name a few that manage risk and compliance with various tools, models, varying taxonomies, with different frameworks in how risk should be measured at a functional level that continues for the organization to be exposed to regulatory scrutiny and a workforce that always seems to be in firefighting mode.
- Considering how advanced technology is with artificial intelligence, advance data informatics, and pattern detection, mortgage organizations can easily implement an integrated Governance, Risk, Information, Compliance and Audit Management (GRICA ) system based on artificial intelligence which is a big data approach to GRICA. It can automate several risk and compliance process flows,
- enables mapping of regulations and standards to internal and financial controls,
- automate the regulatory change management with alerts and tasks,
- map risk to company & department goals,
- automate efficacy and effectiveness of internal controls which is tedious and manual process requiring an army of people.
- Take in external data feeds from other internal systems such as loan processing, credit risk systems and create concept maps between loan processing and credit risk data to operational risk data at the asset level which can give you a view of where all the risks interrelates and provides enterprise risk view through a single platform
We offer the following solutions to Mortgage Lender companies:
- Automated Mortgage Lender Policy & Procedure Management System
- Automate Mortgage Lender Efficacy of Internal Controls through Artificial Intelligence
- Integrate Mortgage Operational Risk Data with Financial Risk Data
- Mortgage Regulatory Change Management Automation
- Mortgage Lender GRC Business Intelligence Platform
Value
- The cost of customer ownership is going up. The timing is right for mortgage organization to displace disjointed legacy application to advanced technologies and implement an integrated Governance, Risk Information, Compliance and Audit system. It should be able to increase operational throughput and reduce non-interest cost the range of 20-30%.
- A sophisticated integrated GRC system will give provide insight into Predictive analytics and context around risk management, business strategy, objectives and performance which will enable the organization to make intelligent decisions about acquiring and retaining the best customers as well as safeguard reputation and financial health of your company.
A Case Study
Currently we are not aware of mortgage organization to have implemented an integrated enterprise governance risk, information, compliance and audit management system.
The timing is perfect for your mortgage firm be an early adopter and become our case study of implementing an integrated governance, risk, compliance and audit management system.
Please contact us so that we can setup a meeting.
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