freemexy: AUTO FINANCE NEWS THAT WILL SHAPE LOAN PROCESSING 2018-2019
AUTO FINANCE NEWS THAT WILL SHAPE LOAN PROCESSING 2018-2019
2018’s big auto finance news is that the US House and Senate voted to repeal the CFPB decree on auto-loan financing. The repeal takes pressure off indirect lenders for the moment, but there’s still a big load of regulations for lenders overall. Federal, state, and local regulations require lenders to understand and implement a growing and evolving set of regulations: TILA/Reg-Z disclosures, Equal Credit Opportunity Act, Consumer Leasing Act, Fair and Accurate Credit Transactions Act, Risk-based Pricing Rule, and Servicemembers Civil Relief Act, to name few. Regulations are already complex at the federal level, but they become even more challenging with the variation of requirements among states—and they may seem overwhelming at the local level.To get more auto finance news, you can visit shine news official website.
Rarely a week goes by in auto finance news without mention of the continued importance of regulations, and the sustained efforts made by lenders to comply. It’s a credit to the lending community that they focus efforts to accurately interpret and apply relevant regulations. A few examples illustrate the community’s focus on compliance:
How will regulatory compliance shape loan processing in the near term? From a lender’s perspective, there are three takeaways. First, stay focused on regulatory compliance as part of your business strategy. Second, adopt the means to quickly implement regulatory changes related to auto loan processing. Third, be able to easily demonstrate compliance in the unfortunate event you are audited.
Judging from recent news, regulations and compliance will continue to stay in the headlines. Industry and political entities at every level (federal, state, and local) guarantee it. As a lender, you’ll need to monitor and assess the regulatory changes that directly impact your lending operations.
The very technologies transforming loan processing can also help lenders meet compliance objectives. Andy Mayer, vice president of F&I solutions at Dealertrack, underscores this idea in How Lenders and Dealers Differ In Adopting New Technology when he observes that “Lenders need to keep compliance in mind when they make their business decisions regarding technology and how that affects them.“ [Lenders] are concerned about fraud and about compliance. I think they have different technical needs, but they also have regulatory needs driving how they do business.”
With the expectation of continued regulatory changes, some predictable, others uncertain, how will technology help lenders to implement specific regulatory requirements that impact their lending practices?