Solving Data Integrity
CSBS faces some very different issues, said Byers.
“We’ve been engaged for the past three-and-a-half years with state regulators as well as (banking) industry in trying to solve a data integrity issue with batch uploads of loan origination file data for examination purposes into our compliance platform,” he said. “Our compliance platform works very well with accurate and complete data but with inaccurate and incomplete data, it gives us a lot of findings that are bogging down the regulators in the examination process.
“Many of them have stopped using technology in a time when the nonbank mortgage origination volume has skyrocketed,” he added.
What’s Happening Today
The session’s moderator, former Housing and Urban Development Deputy Secretary Brian Montgomery, then asked the panel what they had learned about implementing new technology.
“Plan and plan,” said Daetwyler. “We’ve communicated frequently. We’re not going out on a limb by ourselves.
“We need to be more agile and automated. We’re looking forward to utilizing more AI (artificial intelligence) and other technologies,” he added, so the USDA can help more low- to moderate-income people buy homes.
He also suggested that anyone changing technology, within the mortgage industry, make sure they use MISMO’s standards.
At CSBS, Byers said, “We need to bring the state examination system into the world of technology that many of you are used to.”
They’re “in the process of drafting an RFI (request for information) to explore the uses of technology now and in the future in the examination processes and how that can facilitate compliance reviews in our world and, more broadly, help the state bank examiners,” he added.
Toward the end of the session, Bell suggested his colleagues on the panel, as well as those attending the session, faced a similar issue.
“If we don’t figure out a way to define data as an industry, then how are we going to improve processes for this industry?” he asked. “Data and analytics, if we’re not using them the same way, we’re missing a great opportunity.”