Compliance Today and yesterday…. In the past you could simply raise your habd and say…. ” I am compliant”… Today its not so easy… you have to have the policies, adopt them, implement them and then prove to a third party, that they work, and that you are following them.
There are a ton of companies in all aspects of the industry which claim to be compliant with the new Dodd Frank Implementation including TILA RESPA reform and the protection of the privacy of Non Public Personal Information under the Gramm Leach Bliley Act…. when in fact they are not. There are several tell tale signs that a company is not in compliance:
A lender, closing attorney or title agent, is probably not compliant if:
1. If they cannot provide a copy of an acceptable use policy upon request
2. If you can see the tops of the desk through the windows, and there are closing documents in plain site.
3. If the lender, closing attorney, title agent and/or realtor is exchanging info sheets, closing documents, title opinions, and closing statements via non-secure unencrypted email.
4. If you can walk into the office and freely move about areas where Client’s NPI is located. (ie, closed files on the reception desk). Without having to go through locked doors.
This is not all inclusive…. but its a start…
There are going to be a lot of companies claiming to be compliant who will be exposed during their first audit…. You just can’t claim it anymore… you have to prove it.