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How an agile mindset helps servicers adapt quickly to compliance changes | Black Kite Express

This year appears to be a big one for regulatory change, particularly for servicers, with possible changes for the VA service program, CFPB Regulation X, and the FHA partial claim process, among others.

Sandra Madigan, Head of Mortgage Servicing Strategy and Product Development, ICE Mortgage Technology

“As an administrator, when you’re faced with this number of potential regulatory changes, it really takes a small army of people to adapt and confirm that you have the systems and processes in place to help you with compliance,” Sandra Madigan said. , head of mortgage servicing product strategy and development for ICE Mortgage technology. “When you don’t have agility built into your organization, it becomes paralyzing: you’re basically using everything you have to deliver, rather than it becoming part of your normal daily process.”

ICE has built that agility directly into its organizational workflow. Madigan offered five considerations on how to incorporate and use the agile transformation mindset to quickly adapt to regulatory change.

Start with an “outside-in” approach

“If you approach the problem only from your small corner or sphere, you are likely to miss something,” he said.

Instead, you should think about “Why?” instead of “What?” of the problem. For example, in terms of loss mitigation, approach the problem from the goal of keeping more homeowners in their homes, rather than thinking about the changes you need to make in the cascade for your training.

Allow teams to fail, but fail quickly

Give your teams the space to get comfortable with failure and to fail quickly. For example, give a team two weeks to code a solution prototype and see if it works. If not, that failure can provide valuable information about what other things on the table might not work.

“That gets you to a quicker response or resolution without wasting too much time and coming out months later and realizing you didn’t get it right in the first place,” Madigan said.

Spin fast and mercilessly

“When a new regulation is proposed, when you talk about changing certain things, our teams have a quick approach,” he said. “If timelines are compressed, what could we do to continue to support our customers, understanding the time it will take them to implement, test and adopt any changes we make?”

Take a step back and analyze the problem.

The ability to zoom out from a problem and break it down into smaller processes can help move forward quickly. You can discover what can be done differently with the resources you have and even approach problems from a different perspective to help clients better mitigate tight deadlines.

Work together with industry regulators.

“We have a group of people who meet regularly with regulators to explain the mindset of what we’re doing, and it’s been nice that a lot of industry regulators are starting to think the same way,” Madigan said.

Those regulators could explain their program concept, the reasons and benefits behind it, and their approach, and you can present the same problem from a different angle.

“It may be a little pivot, but we can get to the real value of what we’re all trying to do, which is help the end consumer,” he said.

With the way the industry is evolving, this ability to pivot will become increasingly valuable, Madigan said.

“As time goes on, we will have to become agile and nimble in that sense, even at a much faster pace,” he said. “Building that agile mindset within an organization to be able to react quickly is going to be indispensable.”

For more information: ICE Mortgage Technology

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