Regulatory actions are generally serious actions taken by regulators to force a change in the entity’s financial position, operations, and/or technology to effect greater compliance with the applicable regulatory requirements. These actions are usually taken as a result of an examination and require a response from your company in a short timeframe. The regulatory action can take the form of one or more of the following:
- Regular examination comments and recommendations that are typically made as part of the final report.
- Supervisory letters that make “strong” recommendations and/or mandates for the entity to implement,
- Consent orders that mandate a response be made with a remediation plan.
Our regulatory compliance teams can assist your company with planning the response, planning the changes to be made, assist in implementation of the changes and monitoring of the overall remediation activities. The consent order issued that required hiring of an independent consultant to assess the top 14 mortgage servicers’ foreclosure compliance activities is an excellent recent example. We deployed teams of compliance auditors to assist with this effort. The scope and timing can be dictated by or at least require approval by the regulator.