The government is tightening its grip on the mortgage industry, and lenders and servicers are scrambling to keep up with the transition.
Residential Credit Solutions CEO, Dennis Stowe, said at the SourceMedia mortgage servicing conference in Dallas, one of the greatest challenges is the evolving mortgage servicing standards and keeping in front of the change. The whole industry has been focused on change management in the last five to six years, he added.
With the Consumer Financial Protection Bureau putting the pressure on mortgage servicing and lending compliance, one panel discussed the challenge and need to have proof of documentation.
Michael Keaton, senior vice president at Resurgent Capital Services, said on an operational side, companies need systems that drive the process to assist the employees. Additionally, he discussed the recent need to prove they had good documentation with every vendor they were using, showing that they did what they did.
However, even though there is new regulation, panelists emphasized the need for a company to communicate properly in order to be successful.
Megan Johnson, a default litigator with Homeward Residential, said, "A company needs to get everybody on the same page. When you bring together all departments, everyone knows how their sections works, but no one knows how the all the pieces work together." In doing so, Johnson said companies can better avoid risk.
Overall, panelists said the biggest advice they can give is the need to have a cohesive team.
"A well-trained and well-rounded staff is critical to being successful in today’s world. People in the industry can no longer know just one area in the process," Johnson said.