*A Dynamic Approach To Compliance*
**By Tony Garritano**
***Everyone is worried about compliance these days. But of course, I’m going to tell you that technology can help, and it is a true statement. For example, Motivity Solutions, creators of the business management platform called Movation, has formulated a new approach to tackling compliance. The pace of new regulation has been feverish to the point when it is almost unbearable for mortgage lenders. In response, Motivity Solutions has adopted a performance-driven approach that helps lenders remain ahead of any new regulation. Here’s the scoop:
****Lenders that develop performance driven operations in an uncertain lending environment can realize the advantages that streamlined mortgage operations can deliver in terms of measurable business benefits and the impact it can have on their overall go forward strategies. Specifically, business intelligence (BI) technology can help lenders handle a host of compliance issues all within one system.
****As lenders look to cut costs and be more efficient, BI technology delivered by Motivity Solutions through its Movation platform can ensure that individual activities are automatically assigned to employees based on their role and your company processes. Every employee has a workspace that displays the task they are working on and which tasks need to be completed – automatically and in real-time.
****Managers can view the workload of their entire team and can easily assign work and load balance as necessary. Features like those described are important because lenders need to know where they stand relative to new regulation for a variety of reasons. For example, earlier in the year the mortgage industry was hit with new loan officer rules that stipulate that loan officer compensation cannot be based on a mortgage transaction’s terms. In order to avoid a stiff penalty and the label of being predatory, lenders can use Movation to track all elements of the loan and LO compensation.
****Also this year the mortgage industry saw changes made to the good-faith estimate (GFE). Changes on the new GFE deal with binding fees, changes in how the origination fees/discount points are determined, how these are disclosed and what can and cannot be changed. Lenders will find it difficult to comply if they do not have a complete understanding of every element of the loan. Movation provides the ability to “manage by exception” and drill down to the underlying loan-level detail from multiple data sources.
****However, if the technology is not accessible, it will not get usage. For this very reason Movation makes BI extremely user friendly and visual. To this end, Movation provides scorecards to enable the lender to be even more compliant and performance driven in a very complex mortgage environment. Movation Scorecards incorporate a variety of Key Performance Indicators (KPIs) which are defined metrics used to align small-scale operational activities with large-scale company goals. These KPIs are combined into a Scorecard which constantly monitors performance allowing you to compare and analyze goals versus actual results. Movation takes this a step further by proactively alerting key users when a pre-defined event occurs or when a threshold is reached.
****But scorecards are just one way to make BI actionable. The technology also incorporates dashboards. Through the dashboards users graphically see high-level summary data and have the ability to drill down to refined levels of data to instantly identify and solve the root cause of a problem. Movation’s Dashboards are role-based and customizable to ensure employees only have access to relevant, job-specific data.
****Together this technology can make it possible for lenders to get a handle on their operation and not only react to new rules and regulations, but to also get ahead of any new regulations that may come down in the future.
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.