How to Make Your Portfolio Compliance Strategy a Competitive Asset

Fair lending mandates such as The Home Mortgage Disclosure Act (HMDA), Community Reinvestment Act (CRA) and other legislation can be overwhelming for banks, as Wolters Kluwer notes in this article.

Surveillance and compliance needs are growing as regulators step up their scrutiny of these measures.

Your bank can gain a competitive advantage by boosting its portfolio compliance strategy beyond the minimum requirements.

Here are five ways to get that competitive edge, according to Wolter Kluwers:

1. Keep up with compliance regulations. They may change often but staying current will help you avoid problems and fines.
2. Streamline the compliance process. Protect from potential errors by having a straightforward strategy.
3. Learn more about portfolio health. Look for opportunities and watch for risks in your lending practices.
4. Maintain the trust of your customer base by staying reliable and loyal to them. You can do this by keeping up with the regulations that focus on protecting them.
5. Consider investing in compliance analytics and intelligence software to ease compliance challenges and headaches, reduce manual efforts and improve the accuracy of submitted data.

Regulation in the Environmental, Social and Governance (ESG) space continues to be a hot topic and the Securities Exchange Commission (SEC) is moving toward a more aggressive regulatory environment, as explained in this Today’s General Counsel article.

“Public companies should stay watchful for books and records demands from shareholders relating to ESG, as plaintiffs could use information sought in these demands to bolster allegations in derivative suits against the company and its directors,” wrote the legal team at Squire Patton Boggs.