Challenges:
A non-bank mortgage company needed to meet operational and regulatory compliance business objectives. It also had to comply with a legal consent order within a tight timeframe. While the company had some procedures in place, it performed each procedure differently. Also, none of its existing procedures were regularly updated.
The company needed to document and define operational processes and policies for more than fifteen origination, servicing, and supporting departments. That included determining gaps and risks, and documenting potential risk and control issues.
Solution:
Infinitive consultants partnered with the client’s business and risk teams to interview subject matter experts. We then ran process workshops to clearly define and document policies and procedures. These included detailed flows of processes, defined roles/responsibilities and risks/controls.
Our experts also identified process gaps and control weaknesses in organizational processes. We communicated these process gaps and weaknesses with the company. The project team worked to gather and document accurate information for the policies and procedures.
Because of the team’s efforts, the company could meet their consent order deadline. It was also given permission to acquire a large subservicing loan portfolio.
Results:
Our experts documented 50 policies. We also documented 150+ procedures, including 350 detailed processes and associated risks/controls. These policies and procedures give the company clear, holistic visibility across organizational lines.
The organization now has insight into their operations. This enables it to achieve more consistent results. It can also quickly assess impacts of changing regulations. These include recent rules like the TILA-RESPA Integrated Disclosure Rule (TRID)].
The company also has a greater understanding of its business functions. It can now implement greater accountability and ownership over specific processes, functions, risks/controls, procedures and policies.
The short-term benefits of documenting the policies and procedures include the following:
- Cost savings by avoiding fines from non-compliance and reduction in training material costs
- Identification of quantifiable benefits from initiation of several process improvements
- Operational growth from easier integration of new portfolios and clients
Operationally, the long-term benefits could include the following:
- Higher employee productivity due to increased awareness and understanding of processes and responsibilities
- Lower overall administrative costs based on increased operational efficiency
“[Infinitive’s] hard work, focus and dedication were VERY much appreciated.”
– Company VP
