How To Make Sure Reward Follows Risk TAKING ON NEW INITIATIVES MEANS TAKING ON NEW RISK. BE READY
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By F EL ECIA B O W ER S , M ORTG AGE BAN KE R M AG A ZIN E CON TRIB U TIN G WRITER
very year brings with new companyis almost back to birth! An exaggeration, but it does cover wide initiatives. You have heard me and an extensive period. And, if you are licensed in Washinga plethora of other compliance profeston, underwriters and processors are required to report to sionals mention that, as the compliance a licensed loan originator. That LO can be licensed in any manager for your company, you should state, but it must be a licensed LO. Plus, WA requires a ensure you have a seat at the table to unsupervisory plan for these individuals. derstand the initiatives, the design, and the flow if proLoan originators are the target of headhunters offering cesses are changing. While you are listening, take notes the latest, greatest, and sometimes non-compliant combecause those notes will come in handy later. pensation proposals. The C-Suite wants to retain these FELECIA BOWERS For example, does your company have an initiative to individuals for obvious reasons, but you will become modify current staffing models? What exactly does that the “heavy” when you tell them that their proposal is not mean? If it means the company is considering outsourcing underlegal. Sign-on bonuses, percentages of profits, LOs with their own writing, this initiative has a lot of underlying vetting to consider. balance sheets, and net-branching are all being offered. If you are With no disrespect to the C-Suite, the idea of getting more loans not proficient in compensation law, then you should encourage, if through underwriting is the vision before them and not the undernot insist on, engaging a third-party attorney proficient in the rules. lying review process. The S.A.F.E. Act requires the licensing of independent contractor underwriters or processors if they perform THE WHOLESALE MARKET certain tasks. If the company is engaging the services of a third-party Maybe your company is considering entering the wholesale marcompany to handle underwriting overflow, you now must look at ket to work with brokers. If so, we must circle right back to that vetting that company through your third-party vendor management third-party vendor management program because they fit the defiprogram. nition. Contract, privacy, data security, compensation options for Chances are the one-off 1099 independent contractor does not lender paid compensation or borrower paid compensation, and the have a contract, but they too must be vetted under your vendor mandisclosures process are but a few of the things to consider. agement program as they are a vendor performing a service. Do Remember, the broker must perform a minimum of services to not forget privacy, data security (think automated activity timeout), receive compensation under RESPA. And remember TRID disclointernal controls, background checks for LDP, EPLS-SAM, FHFA, sures: if the broker issues them, the lender name at the top must be and OFAC. your name or blank. What if the disclosures are grossly understated, If you are licensed in Georgia, that background check’s look back will you reject the submission? Or will your company require submission of a skinny package of the six items to issue TRID disclosures 24 to 48 hours after receipt of the application. Be prepared for grousing from your retail channel if you are approving brokers within their market. They are basically competing against the broker for the same business which will end up with your company through one channel or another. Been there and done that and it is difficult to work with.
‘FULFILLMENT INTELLIGENCE’
I heard a new term a few weeks ago called “Fulfillment Intelligence.” I listened intently as if I knew what they were talking about while on my second computer screen, the internet was hard at work finding me a definition I could understand. I felt pretty darn intelliCONTINUED ON PAGE 30
22 MORTGAGE BANKER | APRIL 2021
