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26 THE 2015 FIVE STAR CONFERENCE AND EXPO: ACADEMIC RECAP THE COMPLIANCE LAB: With TRID Looming, Understanding Compliance is More Critical than Ever Compliance obligations stemming from the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, the National Mortgage Settlement, states' Homeowner Bill of Rights, client audits, and individual investor guidelines can be a heavy burden to bear in the housing sector. With the CFPB prepping to unleash the highly-anticipated TILA-RESPA Integrated Disclosure rule on October 3, the industry is about to be hit with more changes that must be met with compliance. With all of this in mind, it is more crucial than ever to stay ahead of the curve and prepare for the path ahead. In the Compliance Lab at the 2015 Five Star Conference, panelists from all facets of the mortgage industry discussed topics that go to core of compliance. In the lab, a variety of experts graced crowd with the benefit of their knowledge on a wide variety of compliance related subjects. Lab director and Chief Compliance Officer of Bayview Loan Servicing Michael Waldron, opened the discussion with a brief update on the industry-wide compliance. "e industry, while it has taken its hits, does stay ahead of issues and addresses them accordingly," he said. Danna Clayton, SVP, chief compliance officer, LenderLive, defined proactive compliance in the panel and revealed how her company includes this concept into their business structure. "Proactive compliance embraces a holistic view," Clayton explained. "Everything must work together. You cannot mitigate risk, you must have a working system to follow." She added, "LenderLive makes compliance a part of our culture, we have an entire team dedicated to ensuring we are compliant." Waldron went further to say that companies must "allow compliance to be woven into the fabric of their business." Bob Caruso, division president of ServiceLink, a Black Knight Company, delved into the practices his company utilizes to ensure compliance. He noted that his company uses an extensive methodology to keep all of their employees in code and has quality controls such as a business group, compliance group, and risk, audit, and legal group. Ed Buckley, president of Aspen Grove Solutions addressed regulatory issues, explaining that "a regulated entity can outsource the work, but not the risk associated with the work." He further noted that in order to keep regulation of you back, "compliance actions need to documentable, provable, and written down. Roy Diaz, a shareholder at SHD Legal Group noted that "it's tough being in an industry where the federal government blames you all the time. Perfection is a hard goal to achieve." "Proactive compliance embraces a holistic view, everything must work together. You cannot mitigate risk, you must have a working system to follow."