Mortgage Quality Management and Research, LLC (MQMR) President Michael Steer today advised lenders to adopt a fixed-cost approach to compliance support in the face of margin compression and declining per-loan profits. By investing in a fixed-cost solution for compliance, lenders can better manage their monthly expenses while ensuring they remain compliant, thus avoiding potential financial penalties associated with non-compliance.
Firm urges lenders to invest in lower-cost, on-going compliance services to better balance expense management with mitigating regulatory risk exposure
(LOS ANGELES, Calif.) — NEWS: Mortgage Quality Management and Research, LLC (MQMR) President Michael Steer today advised lenders to adopt a fixed-cost approach to compliance support in the face of margin compression and declining per-loan profits. By investing in a fixed-cost solution for compliance, lenders can better manage their monthly expenses while ensuring they remain compliant, thus avoiding potential financial penalties associated with non-compliance.
“When internal compliance resources aren’t enough, lenders often engage in a one-off relationship with an attorney or other third-party advisory firm specializing in mortgage compliance to address a specific question or issue,” Steer said. “Not only is this approach more costly, but it can also expose the lender to unanticipated risk due to the natural delay caused by getting the third-party firm up-to-speed once the contract has been signed. Engaging in a more long-term relationship provides better cost savings and ensures lenders have access to the compliance advice and support they need when they absolutely need it.”
To this end, MQMR created its Monthly Compliance On Demand Support program to provide a more cost-effective solution for addressing lenders’ ongoing compliance needs. For a flat monthly fee, lenders have discretionary access to MQMR’s team of compliance experts to address any compliance questions or concerns.
In addition, MQMR can assist lenders with a range of other compliance needs, including:
* Guidance on federal, state and loan-level questions;
* Development and review of policies and procedures;
* Reviews of advertising and marketing materials, including websites;
* Creation of a Compliance Management System (CMS);
* State examination assistance;
* Advice on loan originator compensation; and
* Recommendations on overall best practices.
“When a lender has an urgent compliance question, their first thought should not be, ‘How much is it going to cost me to get this answered?'” Steer noted. “Charging by the minute or the hour may work in some instances, but in today’s challenging mortgage environment, lenders simply cannot afford to incur these types of unanticipated expenses. With the fixed-cost approach MQMR provides, lenders rest easy knowing compliance advice and support is only a phone call or email away and that they’ll never have to question picking up the phone to get an answer. This is why so many of the nation’s top lenders have partnered with MQMR to make it through these challenging times.”
About Mortgage Quality Management and Research, LLC (MQMR):
MQMR bridges the gap between risk and compliance through its suite of risk-related services. Since its inception, MQMR has launched multiple products and services to assist lenders in navigating regulatory requirements, including providing mortgage compliance consulting throughout the origination process, conducting internal audit risk assessments and ongoing internal audit support, servicing QC and subservicing oversight to master servicers, and filling the void of meeting vendor management oversight requirements. With 2,000+ operational reviews of mortgage companies, subservicers, document custodians, and vendors annually, MQMR prides itself on being an industry leader in counterparty risk and compliance.
Related link: http://www.mqmresearch.com/
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