ISGN CFPB Mock Audit

ISGN's Consumer Financial Protection Bureau Mock Audit ensures community financial institutions maintain compliance with the changing regulatory environment, CFPB rules and Fair Lending requirements.

With the finalization of the CFPB rules approaching in 2014, many institutions are looking for guidance in navigating the swirl of new regulations. For instance, the CFPB announced fines of $5,000 per day per violation, $25,000 for a known violation and up to $1 million for reckless violations.

When left unchecked, Fair Lending and HDMA risk can stall growth, undermine acquisition plans, hinder profitability and damage an institution's reputation. To avoid and mitigate these risks, institutions must understand and prepare. ISGN's CFPB Mock Audit provides an end-to-end review of the institutions' mortgage policies, procedures and practices to identify internal compliance-related deficiencies before an actual audit. ISGN then provides recommendations and ratings to help institutions develop an action plan towards maintaining compliance.

On a broad scope, ISGN's CFPB Mock Audit:

  • Provides institutions with a thorough compliance health check-up utilizing a shared-services model that saves the cost of hiring additional compliance expertise.
  • Assesses institutions' strengths/weaknesses regarding compliance governance and oversight.
  • Assesses the need to update/develop existing policies and procedures as related to CFPB requirements.
  • Completes a transactional review of targeted loans with comparative analytics.
  • Provides an analysis of Fair Lending that includes comparative analytics and performance testing.
  • Provides summary reports indentifying compliance gaps, risk and potential CFPB violations through risk evaluation taxonomy and assists the institution in developing an action plan to improve and adhere to regulatory compliance.

This best-of-breed approach provides banks the ability to conduct a “dry run” to bring out any issues prior to the actual regulatory review — a much needed function to avoid severe penalties and fines.