OCC Semiannual Risk Perspective Spring 2020
Treliant Takeaway:
Treliant can assist clients in a current state assessment of mortgage operations related to COVID-19 initiatives, process change management and documentation, compliance to regulatory requirements, and cyber/fraud risks. Treliant believes a proactive approach to these risk areas will improve the consumer’s experience but will also avoid potential enforcement actions for the banking industry in the future.
Article Highlights:
The current issue of the OCC’s Semiannual Risk Perspective – Spring 2020, published on June 29, 2020, focuses on the key issues of the COVID-19 pandemic on the federal banking industry. Highlighted are challenges to bank profitability due to historically low interest rates, stress on credit risk due to high unemployment rates and business closings, elevated operational risks compounded by pandemic instigated remote business continuity plans such as an increased potential for fraud and cyber risk and increasing compliance risk due to record mortgage origination volumes, the implementation of federal and state consumer protections programs such as the CARES Act and the Paycheck Protection Program and the resulting process and procedural changes required to implement those programs.