Recently as several of my clients have undergone audits, it occurred to me that there was an additional way to focus a regulator once they show up in your office. That would be to create a one page mission statement and file it inside the front cover of your Book of Policies and Procedures. The mission statement tells them very concisely what you actually originate.
I completed one of these for a client and it was written to make it perfectly clear as to the type of loans the client originated and DID NOT originate. While the regulator will verify you are prepared and compliant regarding any type of loan you could legally originate, the mission statement helped him focus on where the bulk of your business was – not the occasional “one offs” you might be doing.
I have learned that the best audit will be one where you and the regulator are focused. Your part in this? You need to be focused on your total responsibility as a licensee and on having good policies and procedures, complete journals, good back up records, and good explanations where needed.
The regulator comes in your door not always knowing what they will see. Why not focus them by providing a concise mission statement? This simple step might make for a more efficient and maybe quicker office visit.
For more information, call me at (800) 656-4584.
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