Transforming organizations through skillful alignment of people, process and technology.
The Hilltop Companies


Regulatory Policy & Process Assessments

The financial services industry is undergoing a regulatory metamorphosis, especially in the residential mortgage arena.  This fast paced set of changes includes a large number of changes and environment where there is a large volume of new and changed regulatory requirements and the number of regulators issuing such.   There are also new regulators adding to the requirements of lenders, loan servicers and banking overall (the CFPB and the States’ Attorney Generals are requiring new compliance).  The Hilltop Companies has assisted regulated financial entities with their new policy creation and assessment of current policies.  The purpose of the policy assistance is to either meet the compliance requirements for a new regulation and/or to revise current policy to meet changing regulatory requirements.

When regulatory requirements and correspondingly regulatory policy change, we are often asked to assess the impact of such changes on the business processes and controls that are in place to ensure that these processes and controls allow the entity to comply with their policy and ultimately the regulatory requirement.

Processes must be designed to enable compliance and controls should be in place to ensure that the processes are followed.  Our regulatory compliance audit practice is well suited to be able to handle this “cradle to grave” assessment of policy compliance, process enablement, and controls effectiveness.  We also will often add our IT Controls resources to this type of engagement to ensure that the technology that supports the policy compliance, processes and controls is in place, effective and has the proper controls.

Our Regulatory Compliance Audit practice has worked with banks and other depository entities, lenders, loan servicers, master servicers, special servicers, and securities issuers, trustees, internal audit teams, Audit Committees to help them with regulatory policy and process compliance at the Federal and State levels.

Our regulatory policy, process and controls assessments, as well as, our compliance audit engagements have dealt with many different regulatory topics, including but not limited to the following:

  • Bank Secrecy Act
  • Anti-Money Laundering
  • OFAC
  • Fair Lending
  • Home Mortgage Disclosure Act (HMDA data requirements)
  • RESPA
  • Truth in Lending (TIL)
  • Good Faith Estimates (GFE)
  • Fair Credit Reporting
  • Debt Collection Practices
  • Fannie Mae Lender/Servicer requirements
  • Freddie Mac Lender/Servicer requirements
  • FHA lending and servicing requirements
  • Ginnie Mae Lender/Servicer requirements
  • Foreclosure Processes (State, Investor and FHA requirements)
  • Loan modifications (HAMP, HARP and other Federal or Investor programs)
  • Management quality
  • Enterprise Fraud risk

The Hilltop Companies policy, process and controls assessments are enhanced by a custom web based compliance audit application that our teams use to document the assessment procedures and results.   These assessments are often conducted for the following reasons:

  • Bank examiner concerns – either pre-exam assessment or post-exam remediation assistance
  • External auditor concerns – remediation process assistance
  • Internal audit or Compliance findings cause management to engage us to assist
  • Customer complaints
  • Investor audits raise related regulatory concerns
  • Servicing agreement compliance assessment (USAP, PSA, etc.) raise related regulatory concerns
  • Other regulatory compliance special audits/assessments

Given our regulatory experience (many of our audit professionals are former examiners) and our Compliance Audit System (CAS) that enables a consistent and clear compliance audit process – The Hilltop Companies brings depth of knowledge, experience and technology applications to support your company’s ability to comply with the ever-changing regulations.