The Mortgage Daily

Legislative update--

• Yes, Congress is preparing to have hearings on issues that include originator compensation and restrictions on the use of Yield Spread Premiums. Stay tuned on that one.
• FHA has announced that they will be swooping in with SWAT teams to audit problem lenders. Make sure you are in compliance!
• The President has promised further enhancements to the Government's conforming refinance program.
• The NAMB has withdrawn their suit against the new appraisal process. We get the impression that the new administration is reviewing this policy.

Compliance –

Yes, FHA will be auditing lenders vigorously, but what about personal compliance for branches and individual loan officers? We can and should take very seriously, security around our handling of clients' personal information. Here are a few things to check.

• Never leave client files or worksheets on your desk where a casual observer can see or take that information. Have a drawer with a lock and use it when you walk away from your desk.
• Have a "strong" password on your computer(s). Those are passwords that contain letters, numbers and symbols. Don't use your birthday, wife's or children's names, etc. These can be guessed quite easily.
• If you carry information around on a portable "jump drive" make sure that you have encryption enabled. You could compromise everyone in your database without proper security.
• Use a shredder. When a file is complete and the home office has the final package. Go through all paper documents and shred those with personal or identifying information.
• And most importantly (and most overlooked) Do not discuss clients outside the office where conversations may be overheard.
• Being a loan officer puts you in a position of trust. Treat that trust with extreme care. You have your clients life in your hands!