Loan Originator Compliance Self-Testing

There is a legal doctrine known as “Respondeat Superior” which, translated from Latin, means “let the master answer.”  This applies to mortgage companies by holding each employer responsible for the actions of its employees.  Additionally, the Consumer Financial Protection Bureau (CFPB) recently declared that companies are now required to self-report violations and improprieties conducted by their staff.  The discovery of violations not self-reported will result in far harsher sanctions than sanctions issued to a company that voluntarily reports its oversights.

The bottom line is that actions finally bear consequences and the CFPB is not holding back.  Millions of dollars in fines and sanctions have recently been levied against numerous mortgage companies for committing transgressions that were previously ignored.  Can you afford to be one of those companies?

Are you completely certain that your loan originators, customer service staff, and support personnel are conducting themselves compliantly?  Would you be confident if a regulatory agency conducted a surprise audit or tested your staff by posing as a potential customer?

The time to discover improperly trained personnel is not during a regulatory audit.  AxSellerated Development welcomes the opportunity to work with your company’s management in developing a system whereby our “secret shoppers” approach your loan originators posing as potential customers to determine whether they act in compliance with RESPA, ECOA, TILA, and other federal regulations.  If we discover compliance issues, we will work with you to create procedures to avoid future compliance deviations.  Isn’t it better (and far less costly) for us to identify the issues now … before the federal examiners uncover them?