Lenders know that complying with regulations can be the most time consuming and stressful part of the job.
Not only is it crucial to protect the interests of their customers, but they also need to ensure they are compliant to avoid issues internally.
In this article, I cover four of the compliance questions I get asked most frequently.
1. What exactly am I supposed to be tracking, specifically?
Insurance tracking refers to the process of documenting, monitoring, and responding to insurance requirements.
It is essential to verify your borrowers’ insurance coverage regularly to ensure the policy is valid and up-to-date. This includes confirming:
- Policy dates
- Amount of coverage
- Deductibles, limits, etc.
2. How often should I check my policies for compliance issues?
As part of the insurance tracking compliance process, Miniter Group recommends that records be checked regularly. This means checking your records on at least an annual basis.
Keep in mind that this should be done by a qualified personnel, either within the company or outsourced to an insurance tracking vendor.
- For organizations tracking insurance manually, we recommend extensive training on insurance tracking compliance.
- For organizations using our Modern Tracking service, our staff is highly trained to identify compliance issues during review.
3. How do you recommend we keep our records secure in terms of vendor management?
We know data breaches are a serious threat and regulators are doing their part to protect consumers from having their personal information compromised.
Ensuring you stay compliant with security protocols means you must have notification systems in place. The November 2021 rule from the Joint Agencies puts responsibility on bank service providers to notify the bank if a security incident takes place.
With Miniter Group, lenders know that they are taking the necessary steps to protect their records. As a vendor, we are on the forefront of meeting all necessary compliance standards for our own clients as well as the lenders' clients.
4. What are the best resources for staying up to date with regulations?
I stay up to date using these resources:
If you aren’t a full time compliance officer for an insurance tracking company, you might not be frequenting these sites as much as I am. That said, I think we provide valuable insight into the updates happening in regulation.
From complimentary webinars to our consistent industry updates on LinkedIn, you can stay up to date on compliance news with us.
Conclusion
Understanding the requirements and regulations of insurance tracking has long been a proverbial thorn in lenders’ sides.
With the right processes and resources in place, companies can ensure they are compliant, avoid costly penalties and build stronger relationships with their clients.
If you have more compliance questions, please send them my way at ecarr@miniter.com; I’ll be sure to answer them for you.
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