By David Lykken, Special to MPA
As we prepare for the coming TRID act, compliance is the top priority right now for many companies in the mortgage industry. But even after TRID, there will inevitably some other regulatory change that sets the same sort of panic into motion. The regulation never seems to end, and having an effective compliance management system has become an essential to running an effective organization in the industry.
But many, I think, approach compliance with the wrong angle. We figure that we have a list of changes we need to make and, if only we make those changes, then we will be compliant. In other words, compliance is task-oriented--it simply involves checking items off of lists. But I think it's more than that. I think that compliance is also a mindset.
As leaders in the mortgage industry, we need to approach compliance not simply as a new set of rules we need to follow but as a new way we need to think about doing business in our industry. When we implement regulatory changes, we are leading our companies through organizational change.
We'll have to guide people through changes in culture and help people develop new approaches to their work. Many will be resistant to change, especially if they feel like it makes their jobs more difficult. As leaders, we need to be aware of these frustrations and help our people deal with them. Change is harder than checking items off of lists.
A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently, he started producing a one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across the United States.