As lenders sail querulously between the Scylla of red-lining and the Charybdis of predatory lending, an enormous need is evolving for quantitative regulatory and legal navigation tools. The demand by the GSE’s for improved quality control is a step in the right direction, but it is only a baby step. By the time an audit reveals a problem, enormous damage has already been done.
The tired old mantra of “better employee training” is always trotted out when the quality control issue comes up. But can you think of anything more boring than sitting through a training session? Do you really expect that exhortations to “just follow the rules” will stick perfectly? As Donnie Brasco would say, fugeddaboutit.
Violations of policy guidelines are bound to occur. But who is going to be the employee that is most likely to generate a violation? And perhaps more importantly, what types of errors are going to produce the greatest regulatory and legal exposure?
Business intelligence is great at enabling you to measure employee productivity or sales trends. Big data is great for market segmentation. But how good are your dashboards at predicting what underwriting or sales errors are likely to occur next, and how expensive defending the ensuing lawsuits and responding to regulatory inquiries is likely to be?
Think about it.
There are ways to address these issues. We can help.