Consumer Financial Protection Bureau asks: How compliant is your vendor?

Financial companies in the mortgage industry are often on the front lines when it comes to regulatory change. Staying abreast of evolving requirements, and proactively adapting to them, is key to ensuring compliance and mitigating risk.

Risk mitigation is of utmost importance in an environment where lenders continue to be held to higher standards of accountability. As part of this, lenders must look not only to their own policies and procedures, but to those of the vendors with whom they work. It is the lender’s responsibility to make sure a vendor is compliant. For larger lenders, that means actively auditing their vendors.

To make sure these audits go as smoothly as possible, it’s necessary for a vendor to audit itself throughout the year. Of course, not every lender can audit every vendor; this makes it even more important to work with trustworthy, knowledgeable vendors who hold themselves responsible and work transparently within the guidelines.

How to Choose the Right Vendor