COVER STORY / CARRIE BAY
"The bottom line is that doing the necessary
work of protecting our financial system and
its customers comes with a cost."
hose words were spoken by Federal Reserve
Governor Elizabeth Duke at a California
Bankers Association seminar back in January
2012. At that time, the magnitude of the costs
that come with compliance in this new era of
austere rules and heightened scrutiny was just
beginning to present itself.
"Every point where you touch a consumer
has had to change over the last year or two
to ensure compliance with the CFPB's
[Consumer Financial Protection Bureau's]
new rules," according to Dave Worrall,
president of RoundPoint Mortgage Servicing
Corporation.
Worrall says smaller players are not only
dealing with a declining number of distressed
loans, but they're also getting crushed by the
cost of complying with new regulations. "It's
not just needing to expand infrastructure
to be in compliance, but it's also the cost of
needing to prove that you're compliant and
monitor compliance," Worrall explained.
"Small companies are struggling because of this
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