We believe transparency is the key to compliance
With all of the claims of “transparency” made by private businesses, government agencies and even academia, it’s a wonder that investigative journalists aren’t turning in their press cards for taxi medallions. But there are plenty of headlines that suggest that transparency is a little like pistol practice in the dark: steadfastly in earnest but difficult to score.

To us, transparency means providing complete, real-time visibility into loan services and servicing operations. Details of our interactions with borrowers, loan status and especially how we interpret and apply evolving regulations and guidelines are all open for scrutiny by those having a need to know.

What does it take to provide transparency in loan services today?

First, you must have the conviction that, in order to regain the trust of policymakers, regulators, investors and consumers, you have to demonstrate that you are in absolute compliance with laws, regulations and policies that govern mortgage lending and servicing. This includes appropriate disclosure to all constituents.

Second, you must employ secure and enabling technology that affords your constituents real-time visibility into details about loan status, loan performance and your interactions with borrowers. This is, as they say, where the rubber meets the road. Legacy loan servicing platforms cannot meet today’s criteria for accessibility and reporting, which is why continuous investment in technology is a prerequisite to enabling transparency.

Finally, you must foster a culture of openness and candor among your employees. They should understand that ours is a highly regulated industry, and that candor and full disclosure are the orders of the day. We constantly remind our employees by promoting five core values that help foster a culture of transparency while creating value for our clients:
  • Always do the right thing
  • Deliver on expectations
  • Always improve by solving problems
  • Win with humility
  • Be frugal
We believe our clients benefit when we practice transparency. First and foremost, it places them in a command-and-control position that allows them to make informed decisions about their investments. They may have entrusted us with loan services, but they are still clearly in charge. Secondly, it allows them to meet their responsibilities for compliance, preserving the integrity of their investments. Finally, it creates confidence in their investors and regulators and arguably buys them greater flexibility when making future investments.

Transparency may have many champions, but it takes resources, commitment and conviction to put it into action.