The Compliance Review Process

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Lending Compliance ChecklistAmidst our nation’s recent history of banks’ mishandling information, there was a flurry of finger pointing and blame, yet at the end of the day the issue sat squarely on the shoulders of compliance and regulation.  Where and how was necessary information documented? What had examiners clearly let slip under their nose?  Why were agencies allowing banks to unabashedly approve loans that simply were not secure?

Such questions became the central facet in widespread compliance reviews that uncovered several significant oversights and lead to extensive fines, penalties, lawsuits and staff turnover, not to mention the public relations nightmares.  Since then, banks that haven’t yet faced such intrusive compliance reviews are scrambling to retrieve and review all of the documentation, verifying that it is complete, secure and in line with government regulations – the likes of which seem to be under constant revision.

The customizability and efficiency of document management systems have been hailed by many as a savior in compliance review misery.  When the time comes for the necessity of a review panel, those institutions that have effectively implemented such software programs are able to reside in confidence; the gamut of operational forms and files that they possess have been carefully tracked as they were completed and are easily retrievable.  There is no need for an emergency contingency plan to avoid being blindsided by endlessly complex laws and regulations.  Rather, in employing a paperless file management system, submitting to the compliance review will suddenly become considerably less formidable; the potential for reprimand, less prospective.