Home Credit inquiry Lenders must embrace regulatory technology

Lenders must embrace regulatory technology

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As it stands, mortgage lenders nationwide are currently faced with a mix of 7,000 state and federal laws and regulations governing their industry, with another 32,000 individual mandates flowing from them.

And that’s exactly what an industry must comply with in a total matrix of over a million federal and state laws that also face continuous updates and changes, often with little notice or consultation. .

The burden of compliance, or more specifically the effort to simplify compliance with all of this law, is why Rohin Tagra based Azimut GRC and its regulatory compliance platform codified five years ago.

“You don’t have a chance – you know, a fair and realistic chance – of making sure you’re covered if you don’t have a systematic way of doing it,” Tagra told PYMNTS.

It seems investors have also seen the value of compliance automation as Azimut announced today (January 11) that it has secured a strategic investment from Truist Ventures – the investment arm of the Sixth Plus. big lender, just two months after securing its first Series A financing round.

Comprehensive population testing with automated compliance technology

Azimuth GRC said the latest investment will be used to grow the team, product line and go-to-market efforts. Tagra said that just as Amazon has moved from selling books to selling everything, Azimut GRC’s service to the mortgage industry is just the start.

“We’re starting with the mortgage, but we can expand it to the next banking product lines – so credit cards, personal loans, automobiles,” Tagra said. “Beyond that, there is any industry. Any heavily regulated industry has the same concerns: hospitals, healthcare, pharmacy, airlines. “

Using its automated compliance technology, Azimuth GRC performs comprehensive population testing. For example, he tested over 500,000 loans for all the requirements of the CARES Act in about 20 minutes for one client.

“It would take this company 500 people and a year to do it once, and we can do it regularly,” Tagra said.

Fair and just experience for each client

Beyond compliance, this solution enables customers to deliver a fair and just experience for every customer, he added. Azimut GRC’s platform verifies that its clients have correctly reported their clients’ credit bureau and have not charged them any fees. He noted that when companies make mistakes, it means their clients may not be able to access capital or may be charged unfairly fees.

“So that’s what we solve, at the end of the day,” Tagra said.

With the latest investment, Azimuth GRC will continue to add functionality to the platform, and with the partnership with Truist Ventures, it will be able to work on other lines with them.

“We will continue to add more tests to different verticals like mortgage,” Tagra said. “We have already built 200 tests, which cover thousands of conditions, and we will add more tests based on customer demand. “

A proactive solution to prepare for a thorough examination

Demand for such a solution is likely to be accelerated by scrutiny from the Biden administration and the Consumer Financial Protection Bureau (CFPB), Tagra said. It is therefore all the more important to be in compliance with the regulations.

“We have already seen that there have been regulatory actions that have already come out of the new agency,” Tagra said. “If you look at the actions that have been taken and the things that they are looking at, these are the things that we are helping to proactively resolve. “

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