Mortgage Brokers FACTA Red Flags Rule Compliance:

Mortgage Brokers are among the most regulated industries in the country, and as such, are susceptible to many federal violations. Therefore, legal opinions concur that Mortgage Brokers must invest in a legal defense strategy in order to enjoy any possible benefits available through “safe harbor” status in the event of inadvertent violations.

Creating an “atmosphere of compliance” goes a long way in defending against any allegations, litigation, and the mitigation of possible federal fines and penalties. In other words, the more you are able to prove your efforts to become compliant with federal regulations, the better off you will be in those situations.

This could not be more relevant than with the Fair And Accurate Credit Transactions Act (FACT Act), the Red Flags Rule. Given recent events, industry experts agree that Mortgage Brokers will be targeted by federal regulators to ensure compliance with this complicated and dangerous law.

Failure to comply could cost your company millions through class-actions imposed by the Federal Trade Commission, and irreparable damage to your reputation.

Your Lender Relationship And The Red Flags Rule:

Under the Red Flags Rule, Mortgage Brokers are deemed a “creditor”, and also a “service provider” performing on behalf of their lenders. As such, the Rule stipulates that your lenders are held accountable to ensure a Broker’s compliance with the Red Flags Rule.

Several Mortgage Brokers throughout the country have already been denied financial services from lenders because they were unable to provide proof of Red Flags Rule Compliance, and as government regulators audit your lenders in the future, smart money is on the fact this issue will be front and center.

Why RedFlagsComp:

IMMAAG believes that compliance is secondary to the reason for supporting broker implementation of Red Flags Rule procedures. The primary reason is to assure your business operations provide your consumers with the identity protection they expect when they do business with you. We believe security is a matter of business importance, and the rule just makes it a requirement to be done formally.

To that end, we have selected the most complete Red Flags Rule Compliance product available, RedFlagsComp, in order to help you both implement and comply .

Co-developed by an attorney, RedFlagsComp has created a special Red Flags Rule Compliance Suite specifically for Mortgage Brokers. Their dynamic Compliance Suite provides Brokers with all tools necessary to become compliant in a simple and effective manner. As a benefit for subscribing with us, IMMAAG has negotiated a purchase price of only $395 annually for our subscribers, a savings of between $200-$900, depending on the size of your operation.