Hi folks, it has been a while since we have shared what we are seeing on Audit Findings and Violation Notices, so here we go with an update.
Before you quickly say, “Well, that’s not us, we don’t this and we don’t that”……..please make sure you understand what the “this and that” actually is. For example, just because you think you don’t advertise does not mean you are not acting in a way that requires keeping an Advertising Log. Business Cards? Social Media? Just a few examples.
Here are the areas that keep popping up. They are in no particular order of importance.
- Hiring a new MLO and asking him to bring his pipeline with him.
- Allowing your MLOs to keep actual loan files (full of NPI) in unsecure places.
- Compensating an MLO you sponsor by paying his/her “company” directly
- Failure to compensate a former MLO employer for expenses related to a file he/she transferred to you lawfully
- When an MLO leaves, marking the entire pipeline as withdrawn, and then re-assigning it to one of your other employees without concern for the MLO that left you and their rights to commissions
- Evading a lawful requirement to with hold payroll taxes
- Comp plans that can encourage steering
- Failure to make a real, good faith effort, to keep your MCR as accurate as possible
- Having a loan journal that does not match what you file on your MCR
- Allowing non-compliant pirate web sites and social media to exist just because “they are not yours”
- Keeping your archived loans off premises without advising your regulator first, and insuring the off site facility is GLB compliant
If your head is spinning, hire us. Let us sort this out for you. ALL OF THIS IS COVERED IN OUR PROGRAM. We have hundreds of clients, our clients get great results when audited, our fee is super reasonable, so give us a chance to take these pressures off your mind.
Nelson A. Locke, Esq.
Compliance Services USA