Wells Fargo is still answering for the more than 2 million fake accounts that 5,000 of the bank’s former employees opened in order to get sales bonuses, but now, a group of senators want to know if the bank’s auditor knew about the fake accounts too and whether the auditor did anything about it.
Is it possible that in the coming years we will live in a world where the future becomes flexible enough to accommodate the things we can’t see or even imagine? The term for this is the “unknown’s unknown” — where the trends and disrupters that are hard to understand today will have a dramatic unforeseen impact on how we do business tomorrow.
Why can’t the consumer have total transparency and track their loan (start to finish) through a smartphone application? Borrower surveys point to the time between application and approval as being the most stressful for borrowers. If anxiety is driven by the unknown, shouldn’t lenders take the unknown out of the equation?
As the mortgage lending industry continues to work through a myriad of challenges, one truth is emerging clearly. The consumer will be won or lost based on how easy lenders make it to engage with them.
“Larry’s unique background combining top level hands-on mortgage industry operational and consulting experience is indispensable to our clients as they seek critical assistance navigating the complex mortgage and consumer lending market,” said Mark Twerdok, KPMG partner.
News broke late yesterday that New Century will shutter the rest of its business, laying off the remaining 2,000 employees it had been keeping in hopes of finding a buyer. Bloomberg reported yesterday that company officials finally conceded what I'd suspected all along -- that nobody wanted to touch New Century, even with a 10-foot stick.
Fannie Mae announced today that it has filed suit against KPMG LLP, the company's former outside auditor, for negligence and breach of contract in a complaint filed today with the Superior Court of the District of Columbia.
Company executives were not available to comment further at press time.
The mortgage industry is leveraging technology like never before, streamlining processes across the spectrum of lending, servicing, investing and real estate. The combination of regulatory pressure and consumer expectations have set a high standard for efficiency and transparency, requiring a significant investment of time, money and talent to hit the right notes for both.
Ironically, the monkey on the mortgage industry’s back for the past 10 years — increasing regulation — is the very thing that forced companies to find efficiencies in every part of the process, which serves them well as they look to engage tech-savvy consumers. Even as the enforcement of some of those regulations is now in question, the long-lasting benefits of investing in automation will stand.
Mortgage banks have traditionally been slow to embrace new technologies, and while the technology that has improved efficiency, security and customer experience in a multitude of other industries (transportation, education and retail, to name a few) is finding its way into the loan production process, a lot of opportunity still exists in other stages of the mortgage life cycle.