Financial institutions should take a cue from ancient Rome’s battle tactics.
Roman legionnaires used a tactic called the Tetsudo, or “Tortoise,” where their formation and shield position created a natural “shell” of armor, protecting them at every angle from long-range attacks.
Such a maneuver required each member of the legion to be disciplined enough to move as a cohesive unit. A legionary needed to move fast and employ his shield in the correct manner, so he did not expose himself and the other members of his legion, as this unit was only as strong as the weakest link.
Protection Through Mortgage Loan Collaboration
This concept is one that ATS Secured is pioneering in the financial industry, which given current regulatory conditions, needs this kind of collaborative shield network. Everyone in the financial industry can benefit from the ability to collaborate with their colleagues in a safe business environment. Like the Tetsudo, the mortgage process is only as strong as its weakest link.
The ATS Secured Network Is the First Network Of Its Kind That Is Vetted And Verified.
Every member is protected from potential fraudulent attacks. Every action is tracked and ready for a regulatory audit. Each user owns and controls all of their own data, and are able to connect with other professionals to create a trusted business relationship.
Anonymity has no place in the future of financial technology. When a new user, whether an individual or a company, is onboarded onto the ATS Secured Network, their identity is verified. Users control their data and can decide who can view specific data about themselves or their companies by setting their own privacy preferences. This level of transparency and control allows for tremendous efficiencies in both vendor management and loan processes.
Mortgage Banking Vendor Management
Banks benefit from this level of transparency to properly manage the actions of third and even fourth parties. This is important because regulators want to see that financial institutions are able to categorize and measure the risk levels of critical third party relationships, especially those that impact a consumer directly. The purchase of a home is likely the consumers’ number one asset and therefore banks have increased liability if they are engaged in the residential lending business.
ATS Secured Provides a Comprehensive, End-To-End Loan Process Workflow.
Once verified and vetted users have been connected through the ATS Secured Network, they can take advantage of additional technology. It is estimated that a 25% or greater level of increased productivity can be achieved through improved collaboration. ATS Secured users can take advantage of improved workflows. Approved participants can view data, make change requests, approve or endorse documents and be kept current on the loan’s status. ATS Secured helps to mitigate delays and confusion as to who the loan is waiting on to move forward in the process. Whatever stage it is in—pre-approval, underwriting or ready to close—appropriate users on the ATS Secured Network can check in and be assured that non-public personal information is safeguarded with strong security measures.
Secure and efficient collaboration with financial information needs to be the new normal. ATS Secured users are able to collaborate on important financial documents and NPI. This collaboration has many benefits:
Compliance with RESPA – TILA Regulations
The change in regulations this past October replaced the existing Good Faith Estimate and preliminary Truth in Lending Statement with the new Loan Estimate form. The HUD-1 Settlement Statement and the Final Truth in Lending Statement were replaced with the Closing Disclosure form. There are very strict requirements around the delivery, timing and acknowledgement of receipt by the consumer.
The New Mortgage Regulations Are More Than a Change In Forms.
Adhering to compliance will require process changes and a new level of collaboration among all loan participants, but particularly between the lender and the settlement agent. ATS Secured’s technology addresses these compliance needs.
A byproduct of the regulation change is the increased liability transferred to financial institutions. Lenders need to be able to manage and monitor all aspects of the loan closing process while being able to prove that the consumer was not harmed.
Besides the significant monetary fines imposed on banks that do not comply with regulations, reputational risk is another possible consequence. It is essential for financial institutions to be compliant or it will hurt their bottom line in more ways than one.
Secure Communication On the Loan File
Messaging other users on the ATS Secured Network provides worry-free protection from NPI being compromised through unencrypted email. Quickly share sensitive data and documents with other ATS Secured users with the peace of mind that the information is protected behind the firewall.
One Mortgage Form = Streamlined Efficiencies
In a mortgage closing, there are several players involved in the process. Several of these players—namely the title agent, realtor, lender and consumer–all have versions of various documents. These redundancies open the gate for errors, miscalculations and even fraud.
Patrick Stone, President and CEO of the Williston Financial Group, the sixth largest title underwriter in the nation, stated at a WFG conference that “if everything to do with the transaction was loaded into a data room and you could access it depending on your need—whether you’re the lender or the settlement agent, the realtor or the consumer . . . if you had a secure data room with an e-closing you could shorten the time to twenty-one days.”
ATS Secured’s Network does just that: it puts the information on one platform that is viewable by all appropriate parties.
Payment Distribution Verification
The ATS Secured Network enables users to distribute payments. The two biggest issues in payments today are fraud and chargebacks. The ATS Pay application eliminates both. When you apply the ATS Pay technology to a residential loan closing, you end up with ATS Shield: a verified payment process that includes the reconciliation of a consensus ledger combining the data, documents and dollars into a single financial instrument.
Audit-Ready Mortgage Files And Real Time Loan Data Tracking
To help financial institutions prepare for regulatory changes and requirements, the ATS Secured Network gives users the ability to track all interactions, payments and changes made to a file. This means that ATS Secured can produce audit-ready files whenever you need them.
The financial industry is in a vulnerable state without the ability to vet and verify its employees and organizations while collaborating safely with those employees and organizations. The current regulatory environment has added another element of danger for banks in the areas of monetary fines and reputational risk.
Financial institutions need the safety that comes from a verified and vetted professional network, much like a virtual version of the defensive Roman legionnaires formation.
The financial industry’s future will resemble a collaborative, protective shield.
Published in ATS Secured Mortgage News on June 9. Receive the newsletter for exciting news updates.