American service provider responds to regulatory changes by keeping its processes up-to-date
PALM HARBOR — Banks and other financial institutions are in the midst of restructuring business processes in light of hundreds of pending rules that will touch everything from loan origination to payoff. Regulatory and compliance pressures are one of the biggest challenges faced by financial institutions today—the mortgage industry, in particular, is heavily affected by compliance demands that dictate correct business operations. In response to the changes, Nationwide Title Clearing (NTC), a service provider to the mortgage and financial industry, says that the pressures can be alleviated by simply remaining up-to-date with industry standards.
While many banking executives deem strict regulations as the primary impediment to growth and traditional bank business models, NTC says that adapting to the changes by continuing company-wide employee education is a must. CEO John Hillman insists that continual training can help companies procure an edge over competitors by immersing themselves in the stringent regulatory standards.
“All companies in the mortgage industry are in the same boat, but few are using the regulatory onslaught to become more competitive,” said Hillman. “By taking advantage of the changes rather than resisting them, companies can succeed in turning a risk into a benefit. Generating a better understanding of industry regulations is the key to maintaining proper processes.”
In addition to housing an impressive staff training to keep its 350+ employees up-to-date on stringent compliance procedures, NTC regularly attends conferences and workshops throughout the year.
Businesses which fail to adhere to regulation standards run the risk of noncompliance, which is often costly—banks and mortgage companies routinely incur millions of dollars in fines and penalties for failure to comply with hundreds of regulatory requirements.
NTC specializes in building customized service solutions, such as lien release services, document retrieval and assignment services for the residential mortgage industry, where compliance is crucial. NTC officials routinely monitor the rate of compliance they maintain for their clients, and report a 99.8 per cent compliance rate on a consistent basis for lien releases sent to recording jurisdictions within state statute deadlines. Hillman is also investing in better technologies to monitor, measure and maintain regulatory compliance with banking policies.