Article provided by: ComplianceTech
When you need a trusted advisor with experience in the finance industry it is important to seek help from a consultant. Choosing fair lending consulting is an ideal way to manage your needs while you are still building your regular team. A consultant will provide you with the expert assistance to ensure that you meet all of your needs. Whether on a short-term or long-term basis, a consultant helps ensure that you comply with all of the rules and regulations.
Choosing Fair Lending Consulting
There are a number of ways in which fair lending consulting can help your organization. You will need to prepare for a compliance examination from the regulator. You want to be able to show that your fair lending system is reliable and compliant. It is necessary to have a system in place to detect the potential for discriminatory lending.
The regulator needs to know that you have the ability to self-audit. This proves that you have the capability to resolve any problems associated with unfair lending quickly and efficiently. Fair lending consulting specialists are available to assess your current systems and help with implementing improved options before a fair lending exam is presented.
A consultant is available to provide you with the guidance and support you need, particularly when you are still building your team or are in need of extra help. Compliance issues are especially important and require an expert with access to knowledge and systems. Your company will benefit from the experience and expertise of a consultant.
Risk Assessment Issues
Risk assessment is a process that involves a variety of procedures. Proper assessment is essential and therefore should be performed by an experienced professional. There are two main types of assessments including fair lending issues and data needs.
Fair lending risk assessment is done through interviews and surveys of the lender’s management and staff. It is a review of areas such as production, processing, underwriting and customer service. A series of questions are used to find out details about the policies and practices in place that could be a fair lending risk.
Also, an evaluation is completed regarding how the practice guidelines are communicated throughout the organization. Internal controls should be in place to detect discriminatory actions. Once we complete an assessment our consultant provides both a written and oral presentation of the results. The assessment can be used to revise and improve internal processes.
Another important part of risk assessment is a comprehensive review of data needs. Proper data evaluation will determine whether there is enough quality data to conduct fair lending monitoring. In addition, the assessment will determine whether the compliance management system in place is reliable. These are important issues that require evaluation by a qualified consultant.
A reliable and experienced consultant will provide you with the answers you need in order to ensure that you are compliant. Recommendations will be made that will help you improve internal fair lending processes and procedures. A professional consultant will guide you and help your company better understand and meet the fair lending requirements.
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