Mortgage Software Solutions Blog

ABT Leads the Digital Transformation of the Mortgage Lending Industry

ABT Leads the Digital Transformation of the Mortgage Lending IndustryA laptop on the desk of a finance professional.

There is no slowing down for mortgage lenders in 2018.

Mortgage volume in the US is expected to grow and according to National Mortgage News, lenders increasingly view technology as a way to gain a competitive advantage in the growing market.

While some lenders embrace the efficiency that technology gives to the industry, a full 29% describe technology initiatives as a “necessary evil” of the industry.

Access Business Technology, a California-based fintech company, is determined to bring the industry up to speed and usher in the digital transformation of the mortgage industry.

ABT Deploys Quality Hardware & Software

Access Business Technologies (ABT) is a fintech consultant focused on technological advancement for the finance world. The company deploys both hardware and software meant to advance the technological capabilities of their clients.

For hardware, ABT deploys the Surface Pro armed with MS Office 365 for finance professionals who need the best tools for communication and collaboration. This combo provides a quality all-around foundation for finance-focused companies looking to standardize or reduce their device inventory.

ABT is also software developer with award-winning platforms created specifically for mortgage lenders. They have an array of software solutions for lenders that are up-and-running quickly while providing a seamless work environment for staff.

By working with a fintech expert like ABT, lenders save money and get a premium setup with premium service from a single channel.

ABT Provides Secure Cloud-Based Infrastructure

Quality software and hardware are not the only considerations for ushering in an age of technology in the mortgage industry.

Infrastructure also affects staffing. How can mortgage companies attract the best talent?

Flexjobs, a resource for remote workers, reports that workplace flexibility is becoming more important. From 2014 to 2017, the number of people who quit a job due to lack of flexibility has doubled.

Cue the new standard for business: the cloud-based work environment.

The cloud-based platforms that ABT offers to the world of fintech are a major solution to the increasingly remote work environment. Clients who migrate to the cloud don’t need to worry about scaring away talented finance professionals who demand flexibility.

Though the cloud is a relatively new requirement for finance companies, ABT has ensured that security is a first priority. ABT, with its finger on the pulse of the mortgage industry, has focused their fintech developments on cyber security and ensuring that data breaches are not a danger for their clients.

ABT provides cloud-based protection for Office 365 email from being hacked. ABT also provides a host of safeguards including multi-factor authentication, phishing protection on email, as well as encryption and security programs for lost or stolen devices.

ABT is the Mortgage Industry Tech Expert

With hardware, software, cloud-based infrastructure, and cyber security covered, ABT has set a new bar for fintech in financial institutions.

The push to remain at the cutting-edge of mortgage technology comes from an understanding of the industry. ABT knows that a quality tech setup gives lenders the ability to provide the best quality of service to customers.

ABT’s drive to develop quality solutions earned the company classification as a Microsoft Gold Level Partner. As a trusted developer for Microsoft solutions and the experience of deploying Office 365 in the mortgage industry, ABT is digitally enabling a newly mobile generation of mortgage workers.

Through integration and device support, ABT allows mortgage lenders to work even more flexibly and productively.

At the forefront of fintech, ABT hopes to continue the trend in the United States of increasing mortgage volumes by continuing to accelerate the industry along a full path of digital transformation.

To find out more about how ABT empowers financial professionals by using technology to transform the way they work, check out the Access Business Technologies blog.

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Topics: mortgage software integration multi-factor authentication cybersecurity mortgage documents security cloud storage productivity mortgage business data warehousing mobile technology Consumer Finance Protection Bureau Compliance Audit cloud-based data Housing Market Mortgage Lending

4 Ways Loan Management Software Improves the Mortgage Experience

4 Ways Loan Management Software Improves the MortFinancial management software makes everyday interactions smoother for mortgage lenders.

Mortgage software has relied on legacy infrastructures and paper processes for far too long.

In almost every other sector, interactions between banking institutions and customers have moved online.

Web-based transactions for commerce are increasing annually. In 2017, global e-retail sales amounted to 2.3 trillion U.S. dollars and projections show a growth of up to 4.48 trillion U.S. dollars by 2021.  As retail transactions migrate away from brick-and-mortar, the rest of the banking world plays catch up.

In the mortgage world, loan management software offers lenders high-tech solutions to keep them on the cutting edge of the finance world.

Here are the 4 ways that loan management software improves the mortgage experience.

  1. Centralized Access to Document Management

Cloud-based domain services store data on the cloud instead of on a localized server. This gives mortgage companies access to business-critical data from virtually anywhere. Office PCs, employee-owned laptops, and even mobile devices can capitalize on business opportunities anywhere that lenders are interacting with clients.

Loan management software like MortgageWorkSpace (MWS) offers a “portal” or single point of entry to all employees with internet access.

Users can synchronize their user settings and application settings data to the cloud, providing a unified experience across their devices and reducing the time needed for configuring a new device.

Lenders prefer the speed and breadth of information that online-based software provides. When lenders have quick access, customers get quick responses and customer service is perceived as fast and convenient.

Not only does this portal make remote work possible, but it keeps things secure as the mortgage industry embraces the remote working environment.

  1. Improved Security for Client Data

This single point of access protects company assets through multi-factor authentication, ensuring that data remains secure.

Further cyber security measures are managed using Windows Defender, an anti-malware component that keeps intrusions at bay for all devices joined to the MortgageWorkSpace network.

With MWS, there is a cloud-based firewall protecting the devices joined to your lending company’s network as well.

When security events do happen, this software gives the company the ability to remove company data from a mobile device or PC via remote access. This means that even if an employee’s device is stolen, the mortgage software keeps sensitive personal and financial information safe from hackers. 

  1. Effortless Compliance

Running parallel with cyber security, this software handles compliance regarding data security without needing to purchase, integrate, or maintain separate compliance software. MSW has what the industry calls “built-in” compliance features.

Other compliance issues faced by the mortgage industry are included in MSW. Documentation, record keeping, document expiration, and record retention are all features of this platform. This means that lenders using this software are always prepared for an audit without the last-minute scramble.

 In comparison to wider umbrella software, this platform is specifically built and maintained by developers who know the mortgage world.

Developed by California-based ABT, the company is an industry leader and watches the horizon for mortgage legislation that will affect their product’s performance. Lenders using MSW can be sure their software is not only up-to-date with compliance but that it will on boarding the most important finance trends as they happen.

  1. Integration Builds Capacity

Though compliance features are built-in, the platform remains flexible so that your lending company can utilize applications that give a competitive edge.

The Mortgage BI (business intelligence) dashboard powered by Microsoft gives unrivaled visibility to company data. This leads to data-based business decisions that improve the bottom line.

Analysis isn’t limited by this platform’s own BI capabilities though. MSW is vendor neutral so it integrates with loan origination systems, CRMs, Saas apps, on-premises networks, and plenty of proprietary software that makes business run more smoothly.

The days of paper-heavy processes for buying houses are numbered.

Developers are producing these sophisticated platforms that make the mortgage process better.

New financial management software is cloud-based, safe, and expandable. Customers can now enjoy a seamless experience thanks to platforms that give mortgage lenders speed and flexibility in their work.

Good software means agile lenders, which in turn means happy customers.

Does your mortgage company have outstanding software that improves this end-to-end experience?

MortgageWorkSpace is the award-winning business solution that mortgage lenders need. Learn more by visiting ABT.

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Topics: mobile device security email security data security phishing multi-factor authentication Business Intelligence cybersecurity Mortgage BI mortgage documents cloud storage productivity mortgage business mortgage industry cloud-based data Housing Market Mortgage Lending disaster recovery MBA

Cyber Security Seatbelts Save Digital Lives

digital seatbeltsWear a seatbelt—navigate your cloud-based systems with safety in mind. 

“Safety first.”

It’s a pretty easy idea to agree on. We all think safety is important.

So what do we do when customers say we aren’t being safe enough?

2017 saw the largest consumer data breach in world history. Equifax made international headlines for a breach that exposed the personal information of as many as 143 million people.

As Equifax knows well, financial and credit-related information is extremely valuable to cyber criminals. Hacks of this kind need to be protected against.

Consumer Safety

After many years of unsafe automobiles, consumers were tired of dangerous cars. They demanded that the industry clean up its act to make vehicles safer. With a little help from activists, car makers complied.

With government regulations in place, riding in a car has changed. Now all cars are made with seatbelts and few people get into a car without buckling up.

The auto industry’s move towards standard safety precautions can teach finance folks a lesson about how to face consumer demand for safety.

Cyber Seatbelt

Safety precautions for automotive vehicles began with the simple safety belt.

The seatbelt of the mortgage industry is MFA security, which keeps data safe.

The safest “seatbelt” on the market, it’s time to implement multi factor authentication when your company migrates into the cloud.

For your staff, a cloud-based workspace makes work convenient and accessible. For cyber criminals, migration to the cloud means they have a doorway to try and break in.

Also known as MFA, multi factor authentication is a nearly fool-proof way to prevent the wrong people from accessing your company’s data.

MFA requires that employees accessing the cloud have to enter at least 2 forms of digital identification. MFA validates that the person logging into the system is who they say they are. Whether by a text message to their company phone or another form of ID, staffers are let in and hackers are kept out.

MFA is so secure, it has become the modern standard for financial institutions. It was adopted by the Payment Card Industry Data Security Standard (PSI DSS) in February of 2017. It was also listed as the standard for the mortgage industry in New York’s new cyber security legislation.

For any financial institution that works in the cloud, MFA is the first safety precaution that can protect both the company and consumers.

If MFA is the visible seatbelt, what are the airbags that provide safety behind-the-scenes?

Cyber Airbags

Email Guardian is a product developed by a US-based company specifically to keep financial information secure for mortgage companies.

Its main job is to watch business email. It checks URLs on incoming messages to watch for phishing attacks. It filters every link and tests linked sites to make sure they are clean. If a link is dangerous, this program catches it and breaks the link before your staff can click-through.

It protects companies from intrusion by providing comprehensive, multi-layered email security and content controls. A web-based application especially for financial institutions and big business, this application handles dynamic security precautions including email encryption and security tracking as well.

Just like how airbags provide a layer of cushioned protection for car drivers and passengers, this innovative technology provides layers of security to keep email hackers at bay and avoid catastrophe.

With MFA and Email Guardian combined, your company data remains out of harm’s way.

Lessons from the Auto Industry

Just as with unsafe automobiles, consumers are reacting to the Equifax disaster by demanding that something be done about info protection for credit companies and mortgage brokers.

Government regulators have begun to react as well. New York introduced groundbreaking legislation to regulate cyber security for financial institutions. Colorado and Vermont are following suit.

When consumers make an industry-wide demand, companies need to pay attention.

Since widespread consumer outrage over information leaks continues making news and influencing regulators, mortgage companies are wise to adopt security measures and establish a basis of protection for their customers.

In the same situation decades ago, auto manufacturers made serious efforts to improve consumer protection for their products. Today carmakers are seen by the public as one of the most safety-conscious industries.

Taking care of consumer data is important if lenders want to be seen in the same light in the future.

ABT’s cutting-edge Email Guardian application provides strict security breach protection and data leakage prevention. Contact us to learn more.

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Topics: Mortgage Cloud Services cyber security email security data security social networking safety cybersecurity security mobile technology mortgage industry HUD Consumer Finance Protection Bureau Compliance for Mortgage Companies Compliance Audit Housing Market network safety MBA

Why Mortgage Companies Need Built-In Compliance Tools

blog pic for Why Mortgage Companies Need Built-InBusiness data is available at your fingertips, but is it protected?

If your mortgage company isn’t talking about advanced data governance, you’ve missed the memo.

Mortgage companies around the world are facing 2018 with a regulatory backlash as a result of data breaches in the US and Europe.

Every company is scrambling to find the best cybersecurity options for financial data and figure out how to comply with stringent reporting regulations at the same time.

How can your mortgage company ensure that you are up-to-date with the newest industry standards in data governance?

Bolt-On vs. Built-In Data Governance

There are two types of compliance tools that financial institutions can use to follow the law.

Bolt-on refers to compliance tools that a business implements to interact with their existing computer-based financial systems.

Built-in refers to governance features that are part of the same computer system that they use to do their daily business activities including customer retention, storage, and database systems.

Bolt-on tools are a non-integrated option from the first wave of computer data compliance. Systems with built-in compliance features and built-in threat protection are the modern solution to meeting compliance standards.

Built-In Compliance Runs at the Speed of Business

The main issue with bolt-on tools is that they lack the visibility necessary to maintain compliance and keep moving at the pace of the company. For example, when working with outside vendors, mortgage companies are responsible for verifying vendor security.

The legal industry reports that using bolt-on tools can delay the on boarding of third-party vendors for up to 17 days and slow down overall revenue growth. Built-in options, due to being native to the system, move faster.

Built-ins can also coordinate with IT permissions on devices such as laptops and tablets used by third-party employees to access sensitive data. They offer high interactivity while bolt-on tends to offer single-process patches for cybersecurity issues.

As regulatory agencies push for never-before-seen requirements, bolt-on solutions don’t make financial sense anymore.

The True Cost of Built-On Compliance

Though switching to a new system is an investment, bolt-on solutions are actually more expensive in the end. The incremental investment is limitless; each new regulation requires a new patch.  

Instead, built-in systems work backwards by going all-in. They offer extreme security features that allow a company to scale back to the compliance limit.

Bolt-on solutions also cost man-hours. It creates busy work for employees who handle information instead of receiving a completed system report. When you factor in confusion and redundancy, the hours start to add up.

In the US, a time lag in reporting can mean trouble. New York State is blazing the trail for new cybersecurity regulations by mandating that mortgage companies have less than 72 hours to officially report a cyber attack or else face financial penalties.

With a built-in system, alerts are immediate and coverage is full from day one. Your financial services institution is protected from the risk associated with litigation and data breach.

Built-In Protection from Data Loss

ABT, a California-based company, has developed a platform for mortgage companies with built-in compliance tools called MortgageWorkSpace.

Systems like this take compliance out of employees’ hands and create strict policies that are enforced by the platform itself.

Since financial institutions are legally required to hold onto sensitive customer data for specific periods of time, a system like this allows the company to write the retention policy directly into the document management system. The system itself identifies, tags, and protects data for archive, even by custom query.

Integrated Security Features

Built-in systems have other data protection features that connect with employee activity.

For example, Felipe the Finance Director receives an email addressed from Ciara the COO but doesn’t notice that it isn’t from her company email address. Because the company email is integrated with the cybersecurity system, Felipe sees an alert that the sender’s email address is suspect and likely a phishing attempt.

Even if Felipe opens the email and clicks on an unsafe link, the system will take Felipe to a safe link where he is alerted again not to proceed. This type of security safety net is possible because built-in security can transparently see activity system-wide and isn’t limited to a single platform.

Built-in security tools helps catch phishing links, unsafe attachments, unsafe webpage links, malware, and spam so that breaches are prevented.

As data governance regulations increase in almost every global financial market, mortgage companies can remain compliant by implementing cybersecurity measures that are fast, transparent, complete, and save the company money in the long run.

The best way to meet these ever-rising regulations is to get outfitted with a platform that handles compliance as a built-in feature of the system.

MortgageWorkSpace is a business solution that allows mortgage companies to comply with full industry requirements regarding sensitive data. Learn more about cybersecurity for mortgage companies by visiting ABT.

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Topics: Mortgage Servicing in the Cloud Access Business Technologies MortgageExchange cyber security information security for mortgage companies DeviceGuardian MortgageWorkSpace data security mortgage company security financial data security multi-factor authentication Business Intelligence cybersecurity mortgage industry cloud-based data Housing Market

How to Protect Your Devices from Bad Guys

how to protectA businessman takes his work laptop home.

What exactly happens when a company device gets stolen?

Imagine that Richard is a loan officer for a mortgage company. He is behind on email and decides to take his work laptop home over the weekend. After a few hours at a coffee shop, he gets up to use the restroom. Two minutes later when Richard returns, the laptop is gone.

Are the files on Richard’s computer safe? If Richard has remote access to company systems, will there be a data breach? Can the thief access all of Richard’s accounts and client information? What exactly is at risk here?

Keeping Data Safe from Hackers

Stolen laptops are more common than you might think.

Kensington reports that over 70 million cell phones are lost each year and one laptop is stolen in the US every 53 seconds.

The laptop thief’s hope is that he can gain access to all the passwords and sensitive information contained in the device. Selling stolen data is profitable; the device itself is not actually the most lucrative part of the theft. Getting a corporate device would be like hitting the jackpot then, right?

Well, it all depends on what kind of data protection measures the company has in place. For financial institutions dealing with sensitive personal data on a daily basis, it’s important to have a system with the most cutting-edge cybersecurity features in place.

MortgageWorkSpace, a platform that won HousingWire’s Tech100 Lending category for 2018, is one such system.

With MortgageWorkSpace protection, Richard’s stolen machine will remain on lock-down and safe from hackers.

The Windows Operating System on Richard’s computer has a program that encrypts system and user files on the device called BitLocker. The laptop also uses Windows Defender Credential Guard, a security program that uses virtualization to isolate sensitive files and keep unauthorized people from accessing that system data.

In Richard’s case, the thieves have no choice but to wipe the machine and lose all the data.

Great. Richard’s data is safe, but it’s all lost. What is he supposed to do about work?

Getting Back to Work

Richard still needs access to his files and the computer programs that he uses every day to do his job.

To make sure that Richard can return to work, MortgageWorkSpace has an advanced continuity feature called “lost device re-provisioning.” This means that when Richard’s device is reported stolen, the system shuts down his previous portal and passwords. When he authenticates his identity on a new machine, he will have all the same data from his previous machine and full access to work-critical programs.

This is the beauty of a cloud-based system like MortgageWorkSpace. All the system files are located in the cloud and not on Richard’s local machine. He doesn’t lose even a single day of work because of his missing computer.

MortgageWorkSpace uses Richard’s corporate credentials and multi-factor authentication to identify that Richard is not one of the sneaky hackers and he is back into the system on a different computer.

Richard’s company has other strict security options to choose from. For the authentication process, the company can require a user-created PIN to identify him as an employee. Some modern companies are even switching to biometric identification like fingerprint and facial recognition technology rather than PIN numbers, which can be guessed.

Whether low-tech or high-tech, the key is to have multiple authentication steps that are difficult for hackers to duplicate so that sensitive system data remains hidden from the prying eyes of laptop thieves.

More importantly, Richard’s company doesn’t experience a system-wide data breach. Forbes Magazine reports that nearly 41% of the data breach events from 2005 to 2015 were due to lost and stolen devices.

Thanks to technology, Richard’s customers’ information is safe and the company’s reputation remains intact. That’s what’ the most advanced security system has to offer the mortgage industry. . While the security gates are keeping the bad guys out, people like Richard can stay productive and customers can stay safe.

For financial institutions, this type of lost device re-provisioning feature is essential for business continuity.

Businesses protected by MortgageWorkSpace don’t need to worry when a company laptop or mobile device is stolen.  Contact us to learn more about cloud-based mortgage and cyber security solutions.

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Topics: DeviceGuardian mobile device security mobility mobile workforce mortgage company security financial data security phishing multi-factor authentication cybersecurity security cloud storage productivity mortgage business mortgage industry Housing Market Mortgage Lending

What Technology Is Changing In Banking For 2018

blog pic 4In the future, financial information and programming will be increasingly available on-the-go.

The old days of purely brick-and-mortar banks are over.

Mobile banking is the preferred platform as global smartphone use skyrockets and our preference for handheld interaction grows.

In 2011 only 10% of the world’s population used a smartphone. By 2018, that number has reached over 36% penetration.

From traditional commercial banks to finance technology or “fintech” startups, the banking industry is competing in an all-out sprint towards digital progress.

Here are 4 ways that technology is changing the banking industry in 2018.

  1. Open Banking

Open banking is a phenomenon being pushed by regulatory bodies around the world.

Lawmakers in the EU, UK, and the US have all passed legislation that takes personal financial data out of the hands of the banks and returns control to consumers.

The EU’s Payment Services Directives (PSD 2007 and PSD2 2015) will be fully implemented this year.

Together the PSDs regulate financial service providers by requiring transparency about consumer rights and the banks’ obligations to the public. They also require banks to free up customer data for third party access, limiting the power of the bank that gathered it.

The EU regulations coincide with the “Open Banking revolution” in the United Kingdom that intends to make banking more competitive for increased consumer protection. The UK also made it mandatory for all banks to provide third-party access to customer financial data using open API technology at the start of 2018.

In the wake of the Equifax data breach on the other side of the Atlantic, the United States made their move towards stricter regulations beginning in 2017 with the state of New York. US laws are focused on cybersecurity and consumer protection via speedy cyber attack reporting and increased government oversight of consumer data mishandling.

The proximity of these launch dates mean that traditional banks around the world face new technology-based limitations. Open banking and cyber security requirements leave the door open for tech-savvy challengers with a spotless reputation for safeguarding the public.

  1. RegTech

Another technology changing global banking in 2018 is regulation technology or “RegTech”.

RegTech is the umbrella term for software tools specifically designed to streamline regulatory compliance.

In the EU, RegTech has been using guidelines from the 2004 and 2011 Markets in Financial Instruments Directives (MiFID) as well as the General Data Protection Regulation (GDPR) of 2014.

Newly developed RegTech takes new 2018 regulations into account and eliminates duplication issues and insufficient data storage signposting.

Due to increased regulation, the adoption of these programs across the industry will determine which finance organizations move ahead and which ones get stuck hitting every legal bump in the road.

If implemented well, RegTech has the potential to significantly reduce risk, speed up compliance management, and control bank costs despite increased accountability.

  1. Robo Advice

“Robo advice” is the term for technology that does traditionally human jobs in investment banking.

In the past, investment managers evaluated a customer’s financial situation, communicated investment options, assessed risk appetite, handled portfolios according to client preferences, and relayed information about performance back to the investor.

Robo advice is the software and algorithms that provide these services digitally and accessibly on mobile devices like smartphones and tablets.

Millennials aged 22-37 prefer to work with apps and digital information over commercial banks. The demographic has a do-it-yourself attitude and shows an aversion to traditional banking institutions that have steered them into crushing student debt.

In fact, 75% of American millennials report trusting a financial product from a fintech company. Almost half of millennials in the US with investments report being aware of robo-advisors, while a full 11% currently use a robo-advisor exclusively.

With a frictionless user experience, robo advice may become the new norm.

  1. New Technology

In the UK, financial services newcomers are edging out traditional banks. Startup lenders like Iwoca in the UK are touted as the “future of small business lending” by using software algorithms to make credit decisions and having quick loan turnaround thanks to fintech.

By using all-digital or hybrid platforms combining human and algorithmic tools to reach customers, other digitally-native finance startups are slated to follow their lead.

Whether it’s anti-monopoly Open Banking APIs, intelligent RegTech software to handle compliance, or the growing preference for robo advice over human interaction, technology is making huge waves in the global banking industry this year.

As the digitally-native generations grow, traditional financial institutions scramble to expand their digital offerings while fintech startups flourish and join the market.

Join us at the cutting edge of technology with regulation-compliant cyber security, remote device access, and more. ABT equips mortgage lenders with the tools for success in a digital world.

Image: Visual Hunt

Topics: millennials cloud storage mortgage business mortgage regulations mobile technology mortgage industry Consumer Finance Protection Bureau Compliance Audit job opportunity cloud-based data Trump Administration Housing Market Mortgage Lending

Know Your Cyber Security Reporting Obligations

Know Your Cyber Security Reporting Obligations

New laws dictate how finance companies report security issues.

New York’s recent crackdown in state cybersecurity laws marks true reformation in the finance industry.

14 pages of detailed regulations fully outline the new accountability measures at Wall Street’s epicenter.

The regulations compel close to 10,000 financial institutions and 300,000 insurance licensees to put consumer protection before their corporate reputation for the first time in US history.

From a minor system access attempt by hackers all the way up to a full data breach, the new law saddles financial institutes with direct accountability to the state and implements a new standard in reporting for all mortgage loan servicers, banks, credit unions, and insurance companies.

For finance companies wondering how to conduct business in this new reality, here is a guide to the reporting obligations of New York’s new cybersecurity law

Governing Bodies

The first step of understanding the new obligations is to get familiar with the regulatory bodies of New York’s finance world.

The main authority on the new regulation is the New York State Department of Financial Services (DFS).

In the past, financial institutions were regulated via voluntary frameworks and reported externally to DFS in few situations with undefined parameters.

Under the new law, DFS established immediate authority by requiring a DFS-issued cyber security Certificate of Compliance as a basic prerequisite for operating a financial company. This gives DFS the ability to discipline non-compliant companies by revoking their certificate.

Beyond DFS, the regulation stipulates the creation of internal positions for officers to interface with DFS on behalf of the company. This requirement pushes aside ineffective industry-based governing bodies in favor of a direct link.

Mortgage companies must designate a Chief Information Security Officer (CISO) for in-house enforcement of company security procedures. The CISO reports in writing annually to the company’s board and will be held personally, legally responsible in the event of a breach at the agency.

Reporting Obligations

The final piece of accountability addressed in the new law is a reexamination of security reporting.

A “cybersecurity event” is any attempt of unauthorized access private consumer information. In order to mitigate the effects of a security event, financial institutions need to disclose data loss when it happens. This gives consumers sufficient time to take protective action such as changing passwords or putting a hold on a compromised credit card.

In practice though, finance companies endeavor keep data hacks under wraps. They prefer to save face and avoid losing consumer confidence.

In September of 2017, the Equifax data breach made international headlines. Though not the largest, it is considered the worst data breach in US history due to the sensitive nature of personal data that was accessed.

Despite being aware of the situation, Equifax spent five weeks running corporate damage control before disclosing the leak. The company initially underreported the number of affected consumers as 2.5 million instead of the actual 145.5 million people whose private data was stolen.

This failure to disclose the full extent of the damage infuriated the public.

Lawmakers vowed to protect consumers against this type of cover-up. With Sen. Elizabeth Warren (D-Mass.) at the helm, this is how the new regulations were written into law.

No More Cover-Ups

Now, the superintendent’s office places a strict time cap on security breach announcements. A company has no more than 72 hours to report any event that has a “reasonable likelihood of materially harming the normal operations” of the company. 

Since Equifax’s disregard for public safety, the law now stipulates that a data breach report is no longer the jurisdiction of the local supervisory body. Instead, reports of data loss go up the chain of command straight to the New York Superintendent’s office.

With a quicker turnaround time, consumers can be alerted quickly and efficiently through official channels about the breach.

Though basic requirements of the law have already gone into effect, the state of New York did allow time for mortgage companies to learn the law and implement it piece by piece.

According to the roll-out dates of the law, companies are required to be legally compliant with specific sections of the law on March 1 and September 3, 2018. The end of the full two-year transitional period and full compliance will be enforced by March 1, 2019.

For comprehensive compliance guidance and other cybersecurity solutions and, contact us.

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Topics: cyber security mobile security mobile device security email security cybersecurity security mortgage industry Trump Administration Housing Market Mortgage Lending 23 NYCRR Part 500 NYSDFS

Business Data Security and Multi-Factor Authentication

 240_F_122590781_AfHycyjOI0sOqepiZ1DQVBYkZsH7qlRr.jpg Get an extra level of security with multi-factor authentication or MFA.

Each year, cybersecurity gets more complicated.

According to anti-virus developer Panda Security, the amount of malware created by cybercriminals is predicted to grow exponentially with each passing year.

Companies have to face the reality that a security breach has a serious impact on business.

To avoid the distress of company-wide damage control and a PR nightmare, it’s best to make sure security is in good shape.

Real Business Impact

For some businesses, consumer data handling is the main issue.

Financial institutions such as banks and mortgage companies are often targeted by hackers because they house the most personal information.

With major security failures like the Equifax breach of 2017 making international news, the finance industry’s cybersecurity worries are real.

More is at stake than information. A data breach can mean sales losses and a tarnished reputation that lasts for years.

From fines to fraud, there are monetary repercussions as well.

So what is the fastest way to tighten security on cloud-based and traditional networks?

Multi-Factor Authentication

Data breaches in single-factor authentication systems often exploit the system login credentials or passwords of users.

Multi-factor authentication or MFA is a group of security measures that go beyond the traditional password in order to correctly identify a person for system access.

MFA is becoming more prevalent in the financial industry. This kind of authentication was adopted by the Payment Card Industry Data Security Standard (PSI DSS) in February of 2017 and was listed as a standard for the mortgage industry in the State of New York in the same year.

Multiple factors mean heightened levels of information that only the user can provide.

These factors can be a number of different security measures. A “soft token” is when security software generates a one-time-use passcode sent to the user’s mobile device. This type of authentication can also be executed with a text message, phone call, or an email with a hyperlink.

Other factors run the gamut from predefined security questions to biometric identifiers like fingerprints or facial recognition software.

Only the correct user knows the information or is in the circumstance to receive the passcode, so using MFA means only the approved user is given access.

The Modern Office

Another issue with security is the modern office environment.

There are a growing number of remote workers. Employees want access to work-related applications from outside the office.

In this mobile workforce, employees are moving off of network-approved computers and onto personal or public machines. It’s up to the IT department to facilitate their work and make sure they go through a heightened level of security checks.

MFA is an authentication strategy that allows IT to deliver this level of remote access. It solves the problem of identifying recognized employees while maintaining a solid defense against intruders.

User Experience

The final consideration when implementing cybersecurity measures is user experience.

With higher scrutiny comes a higher level of annoyance by the employee at having to prove their authorization.

IT staffers need to balance security measures with user convenience.

One development that improves this balance is “adaptive” MFA. This security technology evaluates the risk factor of the user and then adapts the number of factors required for entry to the system.

An employee using a company-issued laptop at a café with an IP address across the street from headquarters is considered a low-risk access attempt. This situation does not require extra security measures.

On the other hand, if someone is trying to gain access on an unrecognized device in a location where the company doesn’t have an office (e.g. employee is attempting to do work on her tablet while vacationing in Bali) then the number of factors required will be at the maximum level. The employee jumps through some hoops, but with an understanding of why.

Conclusion

Data breaches are happening at the enterprise level at an alarming rate. A watchdog organization called Breach Level Index estimates that every second, an average of 57 records are stolen.

Employees are moving towards a more mobile work environment with wide geographic distribution.

For companies who handle consumer data, implementing MFA is simply one of the most effective ways to crack down on security violations and keep up with the modern workplace.

Businesses that use the MortgageWorkspace management software by ABT are protected by multi-factor authentication and a host of other cybersecurity measures. Contact us to learn more.

Topics: social networking safety phishing multi-factor authentication cloud storage mortgage business Compliance for Mortgage Companies Compliance Audit cloud-based data Housing Market Mortgage Lending

Trump Administration’s Long- and Short-term Impacts on Housing Market

 

Trump Administration’s Long- and Short-term Impacts on Housing Market

The Long- and Short-term Impacts of Trump’s Housing Market Policies

Each time a new administration comes into office--whether the same political party or not--there will always be changes. Political leaders are not elected because they support the status quo, but generally because they want to shake things up. Their policy changes can often shift an entire economic sector, such as the housing market. President Trump’s new policies are already changing the borrowing and lending of mortgage funds.

As with political processes and policymaking in any country, some people will benefit and some will lose. There will never exist a one-size-fits-all policy. Here is what U.S. residents can expect going forward with Trump administration's changes/policies regarding housing.

Upholding the FHA's Annual Mortgage Insurance Premium

Lowering the mortgage insurance premiums is part of what Obama had been focusing on toward the end of his administration. Some low-income citizens, looking to purchase a home, were hoping to benefit from the enactment of that policy. However, the Trump administration has decided to suspend the mortgage premium fee reduction. What does this mean?

Short-term impact

  • When the Obama administration announced its plan to decrease the annual mortgage rate in early January, many lower-income individuals signed up, which caused a spike in FHA applications. With the premiums no longer being offered at a lower rate, many of these requests will either be withdrawn or rejected.
  • There will be fewer new FHA order applications as well as fewer FHA refinance applications.
  • The fee reduction, for FHA-backed loans, would have cut 0.25 percentage points of the total amount borrowed. Savings for Americans with a $100,00 mortgage would have been about $250, and for a $200,000 mortgage it would have equated to about $500 in savings each year. With the suspension of this fee cut, new homeowners will have to find other ways to save.

Long-term impact

  • The overall cost of owning a home will increase.
  • After a pullback of the housing market rates during Obama’s presidential terms, mortgage rates are expected to rise.
  • Affordability for low- to mid-income individuals and couples will decrease over time as the housing costs rise alongside housing demand.
  • Suspension of the rate cut of the FHA is indefinite, which may eventually help the FHA due to higher premiums and higher demand for housing.

Controlling the Consumer Financial Protection Bureau (CFPB)

Reformation of Wall Street practices is part of the reason the Consumer Financial Protection Bureau was created. The aspect of independence of this agency begs many ongoing questions. With the CFPB under the control of the new administration, its agenda will be determined by the decisions of current policy makers.

Short-term impact

  • Currently, there are claims that the body is unconstitutional. Even so, the president exercises control over the agency. The CFPB will not be used in the same way it was during the Obama administration, and as such, it may not act as an independent regulatory body.

Long-term impact

  • The issue of legality of the CFPB remains a court case at the moment, even as Trump's administration exercises power to control the housing sector through this body.
Home ownership has long been a part of the American Dream. While some critics believe Trump’s changes to housing will only make this dream more challenging for some, there are others who believe this cut will benefit taxpayers in the long run, especially if the country experiences another housing market crash as it did in 2008. Trump’s order to suspend the fee reduction will not affect current mortgage holders from making their existing payments, but it might prevent some people from taking the leap into home ownership. It’s important to note that even with a new administration and different policies put in place, there are other factors that affect the markets. For housing, this will always be tied strongly to supply and demand, home interest rates, and inflation.
Topics: FHA Trump Administration Housing Market Mortgage Lending