This month, HousingWire published a guest article by Snapdocs CEO Aaron King, “5 keys to ensure security and compliance with modern mortgages.” According to King, consumer complaints can arise from a wide spectrum of security and consumer experience issues and, without automated safeguards in place, companies may occasionally miss meeting regulatory requirements – despite good intentions – and face consumers, competitors or even partners crying foul.
To fight off increasingly sophisticated cyberattacks and adhere to stricter guidelines from the Consumer Financial Protection Bureau (CFPB), modern technology is the answer for the mortgage industry. From King’s HousingWire piece, here are five tips for mortgage settlement service providers and their lenders to guarantee security and benefit from turn-key compliance:
- Move away from email.
Sending documents containing sensitive information by email is not secure nor compliant, as email servers are highly susceptible to being hacked.
- Securely transfer documents.
Use a platform that transmits documents containing sensitive information over https. When implementing new technologies that involve document transfer, pursue direct integration so there are no cracks through which sensitive information can slip.
- Encrypt sensitive information.
Store consumers’ private information in encrypted fields and in the cloud to protect the data in case of a natural disaster or attack, whether it originates in-person or from a remote location. With a reliable cloud host, companies can benefit from a data center and network architecture built to meet rigorous security requirements.
- Perform due diligence on anyone accessing sensitive information.
Conduct and store background checks on all employees and third-party contractors handling loan docs. Additionally, track log-in location and require multi-factor authentication for any log-in attempts from unrecognized places. Log all instances of access within the database.
- Keep an audit trail.
Use technology that tracks important events that occur with every order and account and that creates an activity record, which would be critical in the case of an audit.
As King explains, Snapdocs’ technology platform can help lenders and title companies ensure security with remote mortgage closings and allow consumers instant and ongoing access to important information about their loan.
Staying current on the latest in security technology and consumer protection regulation is a heavy lift, but working with Snapdocs can significantly lighten the load! Compliance is baked into our modern mobile closing tools, which fend off information security threats.
If you’re a settlement services provider, reach out to Snapdocs to find out how we can help free up your time to focus on your strengths, rather than the regulatory boxes that need to be checked.