For this week’s episode of LLL, Alayna sits down with Dominique Wiest, VP of Regulatory Compliance with LendingPad. Together, they discuss all things compliance, the importance of knowing how disclosures work, and why lenders can’t afford not to know about state and federal requirements.

Dominique started her career as a paralegal and later became the Closing Manager for a local lender. Then she was promoted to Regional Closing Manager, and forayed into compliance from there.

The Importance of Compliance

If you don’t know what the state requirements are, you could be liable for a ton of money. Not knowing is costly. There are not only federal and state requirements, but also investor requirements. There’s a lot of complicated rules, and not knowing could get you in trouble. Rules change, systems change, laws change. Lenders—especially if they have a big lending footprint—are responsible to keep up.

That’s where technology comes in.

To produce a compliant disclosure, there are lots of calculations that needing doing—most of them insanely complex. Performing all of those calculations manually is simply not practical. Having a compliance engine takes all the risk out of it—especially if you know enough to double check the calculations your engine generates. In the regulatory world, Dominique has seen as many as 15 disclosures on a single loan. To run those disclosures manually on every disclosure for every loan would be mind bogglingly complex.  That’s way too many calculations.

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