As the regulatory environment becomes increasingly more volatile, organizations have had to place an increasingly greater emphasis on compliance. And, many are using compliance management systems to ensure they are following regulations.
By David Lykken
Special to MPA
Last week on my Lykken on Lending radio show, I was speaking with business partner and cohost, Andy Schell, and he brought up a topic that many in the industry may be unaware of. As the regulatory environment becomes increasingly more volatile, organizations have had to place an increasingly greater emphasis on compliance. And that's where a compliance management system comes in.
So, what is a compliance management system? According to Andy, a CMS is a system that allows organizations to control, manage, and supervise operations to ensure procedures are in compliance with the latest regulations. When we talk to CPAs or representatives of the CFPB about what organizations can do to ensure compliance, one of the first questions that is asked is, "What does their compliance management system look like?"
Before you make any major decision in your organization, you may want to implement a strong CMS. Whether you're starting a new business line, starting a new retail platform, or getting into wholesale, a compliance management system can keep you within the confines of compliant business practices. The CMS provides a screen for filtering business decisions so that you can focus on productivity rather than worrying about--every step of the way--whether you're going to do something against the regulations. As you develop your business going into this year, I would recommend learning more about compliance management systems. A good CMS may be the best investment you can make in today's regulatory environment.
CFPB wants to know
A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals . Recently, he started producing a one-minute video called “Today’s Mortgage Minute" that appears on hundreds of television, radio and newspaper websites daily across the United States.
