CFPB Compliance Depends on the Right Technology

update.pngThis past week our CEO Stephanie Alsbrooks joined with Intellaegis President John Lewis in an informational discussion of upcoming CFPB regulations that will take effect in 2017.

The discussion, moderated by Intellaegis Chairman of the Board Mark Floyd (former Exeter CEO, former AmeriCredit COO), addressed compliance challenges and the growing importance of technology in helping lenders tackle and resolve related issues.

Clients of defi SOLUTIONS include lenders of all sizes—large lenders with fully-staffed IT departments to small lenders that depend on defi to make sure that technology doesn’t get in the way of achieving their business goals. Regardless of business size, CFPB regulations are becoming more difficult to comply with, and some say impossible, without the use of the right technology. Whether that technology is on the front end of a lender’s system (like the defi loan origination system) or the back end (like MasterQueue’s recovery solution), staying on top of timely issues and partnering with vendors who are highly proficient in their areas of expertise are imperatives.

The Military Lending Act that goes into effect on October 3, 2016 offers one excellent example of the value of our partnerships: the credit bureaus can supply information about whether an applicant is an active-duty servicemember or covered dependent, defi  lenders can set appropriate rules and create disclosures, and Carlton SmartCalcs can ensure the proper Reg Z check is applied.

It is the goal of defi SOLUTIONS to continue to grow, evolve, and remain an integral member of the lending community. We want to share relevant information and include our current and future clients in discussions with other knowledgeable industry experts.

Watch the CFPB 2017 webinar recording here.

The recent CFPB 2017 discussion targeted Front End Compliance, Back End Compliance, and Challenges and Solutions.

  • Front End Compliance: Usury, Adverse Action Notification, Truth in Lending and Regulation Z, Consistent Decisioning and Audit Trails
  • Back End Compliance: Information, Verification, Validation, Disclosure, Communication
  • Challenges and Solutions: Costs, Communication of Information, Accuracy without the Right Technology, System Flexibility

Each lender’s need is dictated by its unique situation and the interpretation of rules and regulations by its legal counsel. Each lender’s technology, if it’s going to meet the need and prove compliance, must:

  • Support the lender’s ability to control and establish rules
  • Allow the lender to change those rules on the fly when applicable
  • Enforce the rules based on the lender’s legal interpretation and show the rules were enforced

If you would like to continue the conversation about CFPB, complete and submit the comment form below.

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About defi SOLUTIONS

defi SOLUTIONS provides the only leading edge, browser-based loan origination system (LOS) platform that is completely configurable by lenders. The defi loan software system allows lenders to manage the application lifecycle and receive analytics from a single, highly flexible platform. defi SOLUTIONS services are affordable, scalable and easily changed with market demands. For more information, go to defiSOLUTIONS.com or defiANALYTICS.com.