About Mavent / Why is Mavent Important to My Business?Why is Mavent Important for My Business?
The pressure on mortgage institutions, lawmakers and regulators to protect borrowers’ interests is growing as a result of the financial crisis. New laws and regulations are coming effective that will require substantial modifications to existing production platforms and automated controls. Attorneys general and the plaintiffs’ bar are launching rigorous and intense inquiries into the industry’s poor performance over the past several years in complying with consumer protection laws.
To an extent unlike ever before, mortgage lenders must take a zero-tolerance approach to regulatory non-compliance in order to safeguard the institution from material, financial and reputational risks.
And yet, complying with the myriad and nuances of consumer protection laws, especially in a fast-paced and production-driven business, has never been more difficult. The US mortgage market is the world’s largest fixed-income market, and the chief supplier of the American dream of homeownership. Therefore, it is not surprising that the laws and regulations governing the industry are increasingly complex and constantly growing. This makes managing compliance risk quite a challenge.
For many institutions, developing an internal solution to effectively manage compliance risk can be difficult to establish and maintain. Most institution’s IT initiatives are planned and resourced far in advance. By contrast, regulatory requirements change sporadically throughout the year and can include fixed deadlines.
This poses a problem for most institutions. Even if approved, compliance initiatives are often placed in queue, and often succumb to delays by other production-related projects.
Maintaining an automated compliance engine that is current with regulatory requirements requires a dedicated team of compliance specialists and IT resources that is able to respond immediately to sudden and unexpected changes. Even for the largest institutions, this may be possible but not resource efficient.
This is why leading institutions rely on Mavent to ensure high-quality compliance risk management.