It’s no secret that records management is critical for Loan originators and servicers. In a post-sub prime world, it’s simply not worth the risk to be in the mortgage business without dotting every “i” and crossing every “t”.
With the sheer quantity and complexity of regulations applied to the mortgage industry, along with the rate at which new regulations are developed, ensuring that the most critical documentation associated with your loans is stored securely, backed up effectively and accessible immediately is more important than ever.
Mortgage files are growing yearly in size as borrower documentation continues to be added over the lifetime of the mortgage. Complexity compounds as loans might be sold, mortgage companies might be acquired and the files might change hands any number of times.
THE HARSH REALITY
In 2010, Bank of America lost a foreclosure case in which the homeowners demanded that the bank produce the original note on the property, which was issued by a different originator nearly four years earlier. Bank of America ended up losing the case because they took too long to produce the required documentation. The court found in favor of the homeowners due to perceived inconsistencies with the bank’s records management. That’s the kind of loss no company wants.
THE DEVIL’S IN THE DETAILS
Records digitization is a good idea. If your company has begun this process, you’re ahead of the pack. But your problems have not all been solved. Questions concerning cost-controls and chain of custody maintenance for both hard copy and digital records abound. Left unanswered, or in a state of flux or incompletion, your company may be exposed and vulnerable to any number of negative consequences.
However, liabilities can be minimized by taking a close look at your current system and addressing questionable or unclear areas.
Limiting access, building and maintaining and audit trail, backing up critical hard copy documentation with electronic versions, and storing all records, hard copy and electronic, in a secure and accessible fashion are all important aspects to consider.
Details such as frequency of need, documentation priority, and regulatory importance will drive any effective hybrid records management program, and will help to make sure costs of maintaining records doesn’t become cost-prohibitive.
YOUR CHOICE OF A RECORDS MANAGEMENT PARTNER MATTERS
Don’t lose momentum in doing what you do (selling mortgages) because of the need to manage said mortgages. It’s not worth it. Instead, partner with a records management company that can do it all, and make sure that your highest priorities are maintained with the highest level of quality. Morgan Records Management provides the best solutions to mortgage industry needs. Secure hard copy, Scan-on-Demand capabilities, secure data storage, transfer and sharing platforms, hard copy file pick-up and delivery, and 24-hour personalized service. Call us today!
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