is putting out a call for participants in two new groups tasked with improving risk management of third parties while reducing costs for all parties.
One group, the Third Party Business Partners Risk Management Community of Practice, seeks to create a forum for industry-wide discussion of issues associated with the use of third party service providers, This group’s goal will be the establishment of specific task-oriented efforts to develop best practices or standards for different aspects of third party risk management. The second group, the Third Party Oversight Questionnaire Development Workgroup, will craft a list of questions that lenders and servicers can use to assess third parties.
“As our industry continues to expand, third party compliance and oversight have become major business obstacles,” said Rick Hill, Executive Vice President of MISMO and MBA Vice President of Industry Technology. “Lenders and servicers are ultimately responsible for the work of third parties, but current practices for managing risk associated with third parties are often inefficient and expensive. As regulatory and investor requirements continue to push costs higher, the lack of industry-wide standards or best practices is costly for all involved. A collaborative effort to develop best practices and standards that includes lenders, service providers, investors and regulators, offers the opportunity to foster more efficient and productive third party risk management strategies that will benefit lenders, service providers and others.”