If you’ve even glanced at the headlines recently, you may have noticed that the Supreme Court made a ruling that calls into the question the constitutionality of some elements of the CFPB (although that likely doesn’t mean it’s going away any time soon.). Another story suggests that same court will be considering a case that also calls into question the constitutionality of the FHFA.
Party time, right? Time to throw all of our eggs into the sales basket and kiss the lawyers goodbye?
Not by a long shot. I’m not an attorney, but I’ve been in business long enough and talked to enough great compliance experts to know that our industry will always be under the watchful eyes of multiple agencies. After all, getting a mortgage is a complex process which is often poorly understood by most consumers. Big money is in play. The ingredients are all there for an unscrupulous actor to take advantage of the borrower. So while the activity levels of the various enforcement agents may rise and fall, we’ll always see our share of rules and regulations.
But that’s not the only reason to keep the lawyers and compliance team on the payroll. You see, I’ve come to learn that a good compliance program, paired with a continuous QA process, indirectly improves sales.
Thank about it. No, that hourly invoice in six-minute increments does not a revenue center make. But a brand that comes to be known as one of the “good guys” wins the trust of the consumer. Trust is a vital element of choosing a mortgage lender. It’s likely the borrower, even one who has previously had a mortgage, understands little of what’s going on behind the scenes. Sure, he or she might rely on the REALTOR or mortgage broker for guidance. But the loan officer plays a huge rule much of the time, too.
Good loan officers take the complex and make it simple for borrowers without oversimplifying (or cutting corners…or pushing them in one direction without making an informed decision). The bad ones—well, eventually, they get their companies and, subsequently, brands in trouble. Borrowers Google lenders when they have a choice. And if you don’t believe having your brand name listed in several enforcement actions at the top of that Google page hurts your chances of winning the customer, I have a bridge to sell you.
I know that, in a strange way, things are busy right now. But a time is coming soon when we’ll all be competing on multiple fronts. Be sure that your QA and compliance programs aren’t leaving you short on the sales side.
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