The new compliance paradigm: How business intelligence and big data are changing the mortgage...
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Transcript of The new compliance paradigm: How business intelligence and big data are changing the mortgage...
The new compliance paradigm: How business intelligence and big data are
changing the mortgage landscape
In partnership with
Chris EdgingtonSr. Industry Solutions Marketing Manager, Kofax, Inc.
David K. MoffatPresident & CEO, Mortgage TrueView
Dimitri Seneca SnowdenSenior Systems Engineer and Visual Strategist, Altosoft
Moderator:Richard BitnerPresident, HousingWire
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Today’s Regulatory Environment
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Compliance Costs Around the U.S.
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Focus and Priority on Regulatory Compliance
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Forced out of Business – Smaller Banks Unable to Comply
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Basel III capital rules could cause more banks to unload servicing rights
Institutions that rely on mortgage banking could be forced to seek partnerships with more diversified institutions
Some independent mortgage bankers are "too small to comply“
Get bigger, hire attorneys, get guidance on compliance issues
In the News: Thursday, February 13, 2014
Small Banks’ Disappearing Act
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Number of Banks with $100 Million or Less in Assets
From Siloed to Shared and Collaborative
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Best Practices for Regulatory Compliance
Invest In Technology That Multitasks
Apply Analytics to Paint a Clearer Picture
Make Compliance a Business Priority
Extend Controls from Back Office to Front Line
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4 Pillars of Mortgage Automation
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Kofax Mortgage Automation Platform
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Presented by
David K. MoffatPresident
The Case for Intelligent Governance in the Mortgage
Industry
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Mortgage Industry Drivers
Demonstration
HMDAnalytics- Case Study - Research Project
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Strategic Drivers– Regulators are embracing Business Intelligence– Risk Management Matrix– Transparency
Tactical Drivers– Know more about your data than your regulator(s)– Know how regulators are using your data– Return on Investment Business Intelligence (ROI BI)
Business Intelligence Drivers
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1See http://www.fdic.gov/about/strategic/it_plan/BusinessTechnologyStrategicPlan2013-2017.pdf
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Strategic Drivers:Business Intelligence and Regulators
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1See www.consumerfinance.gov/strategic-plan . Image retrieved March 21, 2014
Strategic Drivers:Business Intelligence and Regulators
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Strategic Drivers:Risk Management Matrix
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Fail Pass
Fail Fail
Strategic Drivers:Transparency
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Tactical Drivers:Know Your Data
Completeness
Quality
Content
Context
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Tactical Drivers:How Regulators Use Your Data
Absolute Benchmarking– Adverse Outliers
Relative Benchmarking– Adverse Trends
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Executives respond to benchmarking:
Benefits:
1. Current-state Assessment. A rigorous baseline of cost, quality and cycle time, external and internal comparisons of cost and performance, and the identification of meaningful gaps enables fact-based, defensible understanding of the function's cost and effectiveness.
2. Basis for Change. An effective benchmarking initiative enables an organization to more easily identify and prioritize opportunities which, in turn, results in more informed and relevant improvement targets and a stronger overall business case for the transformation effort.
3. Basis for Continuous Improvement. Benchmarking supports a culture of managing by metrics and by enabling periodic measurement against the initial baseline.
4. Standardization. A standard set of terms and definitions for key aspects of a company's business processes enables the enterprise to share the same level of information about the state of the enterprise's operations.
About Benchmarking
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Tactical Drivers:Return on Investment Business Intelligence
Drive Revenue
Control Operating Expenses
Control Regulatory Compliance Costs
Reduce Fines and Penalties
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Compliance AttributeTraditional
ComplianceParadigm
Intelligent ComplianceParadigm
Quantitative Metrics Did I do something I shouldn’t have? Am I doing something I should?
Qualitative Metrics Were the specified process performed? Was the specified order followed?
Established/Static Rule Set SEC, FINRA, etc. Internal Revenue Code
Developing/Dynamic Rule Sets Dodd-Frank CFPB
Entity/Enterprise Risk Management Absolute performance
Market Risk Management Relative performance
Passive Event Driven (i.e., What/When)
Active Enterprise Driven (i.e., Who/Why)
Integration Return on Investment Risk measurement Process Improvement
About Mortgage TrueView
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Questions?
A recording of this presentation will be available on HousingWire.com/webinars