By Colgate Selden The Evolving Role of the Chief Compliance Officer in Selecting Tech and Tech Vendors The digital mortgage promise is compelling: new technology and better workflow meeting consumer, lender, servicer, investor and regulator needs and requirements — all built for compliance and protecting participants from unnecessary risk. If executed properly, the transition from analog to digital drives value all along the mortgage continuum: improving customer experience and education, expanding capacity, reducing cost, minimizing fraud and shortening marketing-to-application approval cycle timing. Regulators have thrown support behind this evolution. Digitally-repeatable processes can help eliminate manual errors and provide auditable, transparent workflows, making compliance elements more transparent and easier to examine. But digital success is not guaranteed: Get it wrong, and you’ve built a platform capable of automating repeatable defects, compliance errors and disclosure violations that could be viewed as fraud, unfair, deceptive, or abusive. Compliance and
BY PAUL C. KATZ Digital Transformation: The State of Play for Community Bankers Digital transformation was on the program – and on the minds of the attendees – at the American Bankers Association Conference for Community Bankers in San Diego this week. I moderated a panel featuring Bryan Luke, President and Chief Operating Officer of Hawaii National Bank, and two of my colleagues, Ken Janik and Colgate Selden. We spoke directly with conference attendees about the relationship community banks have with digital lending. Our panel – Digital Lending: Risks and Opportunities – explored the economic, technological and social forces driving digital transformation efforts. We examined different tech-implementation strategies bankers are considering and conducted real-time audience polls, providing timely insight into bankers’ thoughts on digital lending. Here are some of the highlights from Tuesday’s session. We set the stage by sharing some provocative predictions from leading industry consultants and
You’ve been coding feverishly for ten minutes. You’ve got twenty table joins lined up, and you’re ready to execute your newest monster SQL query. A single bead of sweat rolls down your forehead as you timidly press the button to execute. You watch the SQL engine spin as it starts to process your query. One second ticks by. You think, “No syntax errors!” Three more seconds. Now you’re starting to get nervous. At the ten-second mark, nervousness gives way to panic. Now you think, “Where’s my data?” At twenty-two seconds, two records finally come back from your query. “That’s the data I’m looking for, but why did it take so long?” you ask yourself. Even the best query writers have been here. So, how do you write better SQL queries to improve your execution? Be Linear Map out a linear path from table to table to table – to get
Bankers enjoy a dizzying array of opportunities to leverage new partnerships to cut costs, boost profits, improve technology, enhance the customer experience – and sometimes – all of the above. That’s the good news. The not-so-good news is sifting through an increasingly complex landscape of new entrants and established vendors and vetting potential partners takes time, energy, expertise and money– often more than any one bank can easily manage. This is where a national trade association is uniquely positioned to add value. It can spread research costs across a diverse membership base while evaluating best-in-class providers offering a broad range of products and services. THE ABA ENDORSEMENT PROCESS The concept behind the American Bankers Association’s due diligence process is as simple as it is successful. Its process identifies proven, reliable vendors while saving banks time and money – and uncovering areas of information that could otherwise be difficult to obtain.
Borrower expectations are shifting. Fast, secure, and accessible digital services are no longer an advantage – they’re imperative to remaining competitive. With the rising popularity of non-traditional banks and lenders, banks are seeking innovative ways to meet changing expectations, compete with new challengers and remain profitable. Last week, banking professionals in the areas of information systems and security, compliance, risk and more gathered at the New York Bankers Association’s (NYBA) Technology, Compliance & Risk Management Forum to discuss industry trends, emerging technologies and best practices. I hosted a session at the Forum, where I spoke directly with attendees about the future of digital banking. The session – The Banking Technology Roadmap – explored best practices when partnering with fintech companies and previewed what’s on the fintech horizon. Here are some of the session takeaways: BEST PRACTICES WHEN PARTNERING WITH FINTECH COMPANIES PLAN Know the tech budget What percentage of your
Are You a Good Candidate for Outsourced Mortgage Fulfillment? These Five Questions Can Help You Decide.
“Should I stay or should I go?”—The Clash In today’s volatile mortgage environment, many community lenders are reexamining their commitment to mortgage operations or withdrawing from residential lending altogether. But, with the single-family mortgage often functioning as a cornerstone product for community lenders, many are asking themselves: Do we really want to send customers across the street for a product our communities expect us to offer? More and more lenders are turning to outsourced fulfillment to continue offering this core product. But, is outsourced fulfillment right for all local lenders? Is outsourcing an option you should be exploring? To help decide, ask yourself: Why are you in the mortgage business? Are you offering the digital customer experience large lenders and FinTechs are marketing? What is your current monthly loan volume? What is your residential lending growth strategy? What are your fully-loaded origination costs per loan? Why are you in the