HousingWireHousingWire
No one can know what, exactly, will change in 2025 for the mortgage servicing industry’s quality control units, but experts agree there will be changes. Rohit Chopra, head of the Consumer Financial Protection Bureau (CFPB), is unlikely to remain at the bureau’s helm after the new presidential administration is inaugurated, which will probably mean new priorities and protocols.
For mortgage servicers, the challenge isn’t just adapting to regulatory changes — it’s managing the uncertainty and stress that comes with them. But waiting for clarity isn’t an option. Leadership in QC requires organizations to proactively navigate change, ensuring continued compliance in an evolving regulatory landscape. To stay ahead, servicers must focus on best practices in compliance, fair servicing and fraud prevention.
In this context, ACES Quality Management’s auditing technology has emerged as a pivotal tool for servicers seeking to enhance their servicing QC processes and adapt to an evolving regulatory landscape. This was evident during a recent discussion featuring Hilary Holloway, Director of Quality Control at Cardinal Financial Company LLP, and Yari Mercado, Quality Control Manager at Pacific Residential. Both professionals shared how ACES’ tools have transformed their workflows and addressed the unique challenges faced in today’s regulatory environment.
Modern challenges meet modern technology
In 2024, the mortgage industry was rife with challenges, from resource constraints to regulatory changes and the complexities of mergers and acquisitions. For Holloway and Mercado, these challenges were compounded by the need for robust QC measures to prevent fraud and ensure compliance.
Mercado described her organization’s hurdles during a merger, where they faced significant resource limitations. She noted that these constraints often meant that a single person was managing multiple responsibilities, making it essential to prioritize efficiency. Leveraging ACES allowed her team to identify key risks through targeted audits, ensuring compliance even during periods of resource scarcity.
Despite these challenges, she emphasized the importance of leveraging ACES to automate processes and conduct more targeted audits. “We love ACES. The communication and tools it provides allow us to focus on servicing and state regulations with precision,” she said.
Holloway echoed these sentiments, highlighting her organization’s transition to a new subservicer in 2024. This shift required significant data restructuring and introduced steep learning curves, but it also provided an opportunity for her team to automate audits, sampling, and reporting through ACES. Holloway noted that automating these processes has laid the foundation for increased efficiency and reduced administrative burdens.
A culture of quality and transparency
Both Holloway and Mercado underscored the critical role of fostering a culture of quality within their organizations. Mercado’s philosophy centers on the belief that QC is not just about compliance but about providing superior customer service. “Having QC in place allows us to market ourselves as a provider of quality, which builds trust and ensures long-term success,” she stated. She also emphasized the need for a balanced approach that aligns sales priorities with compliance requirements.
Holloway expanded on this by discussing the importance of transparency and trust in QC processes. “Building trust with partners, investors, and agencies requires proactive communication about risks and corrective actions,” she said. By leveraging ACES’ technology, her team has been able to streamline call monitoring and reporting, ensuring consistency and reliability in their QC efforts.
Leveraging ACES for servicing QC
ACES’ Managed Questionnaires and servicing-focused Audit Packs have been game-changers for both organizations. These tools not only pre-populate standard questionnaires with dynamic questions but also leverage predictive analytics to identify trends, such as rising delinquencies or borrower hardships, ensuring compliance while providing actionable insights. Holloway highlighted how these tools have simplified root cause analysis and improved regulatory compliance.
“Using the Servicing Audit Pack, we’ve been able to streamline processes and create better action plans,” she said. This has not only enhanced their ability to meet compliance standards but also strengthened relationships with their subservicer, who also uses ACES.
Mercado expressed her enthusiasm for integrating ACES’ Call Monitoring Audit Pack into her servicing QC processes. “This will support our efforts to prevent unfair or abusive practices, ensuring fair treatment of consumers,” she noted. She plans to implement enhanced operational controls and risk assessments in 2025, further leveraging ACES to address regulatory priorities such as foreclosure proceedings and payment processing.
The road ahead: Automation and training
Looking to 2025, both Holloway and Mercado are focused on leveraging ACES’ automation capabilities to manage increasing data volumes and regulatory complexities. With anticipated changes in CFPB leadership and evolving regulatory priorities, the ability to proactively adapt to new compliance requirements will be critical. Both professionals aim to mitigate risks, ensure fair practices, and maintain transparency in an uncertain regulatory environment by automating audits and enhancing operational controls.
“Enhanced operational controls and continuous training will be critical,” Mercado emphasized. She plans to work closely with her team to stay ahead of regulatory changes and ensure their processes are both secure and efficient.
Conclusion
Proactive measures will define success in 2025. Increased training, enhanced organizational controls, and robust risk assessments are non-negotiable. As the regulatory landscape evolves, staying proactive is critical. By leveraging tools like ACES Managed Questionnaires and ACES Audit Packs, organizations can maintain compliance, improve transparency, and minimize risks—ensuring they are prepared to meet the challenges ahead.
ACES Quality Management has proven to be an invaluable partner for Holloway and Mercado in their pursuit of excellence in loan quality. By automating audits, enhancing transparency, and fostering a culture of quality, ACES has empowered these leaders to navigate the complexities of the mortgage industry with confidence. As they look to the future, the continued integration of ACES’ technology will undoubtedly play a pivotal role in their success, ensuring compliance, efficiency, and a commitment to quality that sets them apart in the industry.
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