Industry Insights

New, tougher CFPB Regulations are coming August 2015; Lenders should start planning now

Posted by Laura Venerable on Jun 19, 2014 5:19:53 PM

canstockphoto11304942When the  Consumer Financial Protection Board (CFPB) was formed, it embarked on a project, known as “Know Before You Owe”, to improve mortgage customer experience by standardizing the information borrowers receive about a mortgage and empowering them to make better decisions.  The project resulted in a significant revamping of the documents and new requirements to get them to consumers in advance of key milestones.The most recent initiative in this ongoing project is the eClosing Pilot announced by the CFPB on April 23, 2014. While paper copies are still an option, clearly the quickest, most convenient, and cost effective solution is to deliver documents to consumers electronically.  But because of the personal information contained in the documents, normal methods, like email, are not an option. So how does a mortgage lender who wants to integrate electronic delivery and eSignatures into their lending workflow comply with “Know Before You Owe” requirements? Very carefully. There are a lot of moving parts and it helps to know what to look for.

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Topics: CFPB Regulations, Mortgage Customer Experience

eLynx Not Vulnerable to Heart Bleed Bug

Posted by Rick Wagner on Apr 10, 2014 7:29:00 PM

As you may know, a significant Internet security bug has been identified, verified and communicated via many news and industry sites this week.  This bug has been given the name “Heart Bleed” because it resides within the OpenSSL's implementation of the TLS/DTLS (transport layer security protocols) heartbeat extension (RFC6520). OpenSSL is widely used across the Internet to encrypt and secure user information during transport. When it is exploited it leads to the leak of memory contents from the server to the client and from the client to the server.  From initial reports, this is a serious and wide spread problem.

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Topics: Information Security

New Vendor Risk Management Standards – What Banks Should Expect from Providers

Posted by Alec Cheung on Apr 3, 2014 4:46:00 PM

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Ever since the CFPB issued their bulletin on service providers back in April of 2012, the vendor community has known that banks would be tightening their oversight of vendors. Last October, the OCC officially updated its guidance on third party vendor risk management practices. There are three important points the OCC has made clear:
  1. Banks and lending institutions that the OCC regulates are held responsible for vendor performance.
  2. Failure to have an effective vendor risk management process may be an unsafe and unsound banking practice.
  3. Banks must perform appropriate due diligence, carefully negotiate contracts, develop monitoring plans and put in place contingency plans.

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Topics: Vendor Management

Is this the year to improve mortgage customer experience?

Posted by Alec Cheung on Jan 16, 2014 5:11:19 PM

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“As 2014 kicks into gear, the mortgage industry starts off with a significant milestone: the new disclosure regulations and qualified mortgage rules specifically mandated by Dodd-Frank are now formally in effect. The mortgage market is evolving and adapting as a result, perhaps in ways that are even unexpected or unforeseen. Thankfully, the CFPB has given us a lengthy period of time to figure out how to manage compliance to these new standards, to re-design business processes and to implement necessary changes.

 

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