The kindergarten compliance rulebook for credit unions: Part 2

first_img 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr In the last post, I went over the impact state and federal regulations are having on credit union operations and how to identify potential violations. As promised at the conclusion of the post, today we’ll discuss how you can ensure your credit union meets the necessary compliance requirements by getting back to the basic skills you learned in kindergarten.When it comes to compliance exams, regulators want to see that:You have adequate staff in place who understand the rulesYou have made a good effort to follow the rules and do the right thingYou have put the systems in place, like FinTech, to track compliance and policies so issues are mitigated before they become problemsIn many cases, we see smaller lenders outsourcing the higher risk areas surrounding collections, skip tracing, and repossession management to large vendors who can leverage economies of scale to meet the stringent compliance requirements that are challenging for smaller institutions.Some lenders, including the largest SubPrime auto lender Santander, have embraced regulatory scrutiny as a competitive advantage, as stated in a recent article by their CEO Jason Kulas, who sees the strict requirements as a sort of “buffer” to keeping startup subprime shops out of the industry. continue reading »last_img

Leave a Reply

Your email address will not be published. Required fields are marked *