Post-Merger Regulatory Assessment

Problem: A large, federally-regulated bank purchased a non-federally regulated mortgage company.  While the bank knew what the regulatory requirements were, they were having difficulty integrating them into the processes of their combined organization.  The merged organization knew that at some point they would be examined, and they were not prepared. They were risking regulatory sanctions, penalties, and  predatory lending concerns.

Solution: We assessed the client’s overall risk and developed a Gap Analysis that showed them what things they needed to implement to meet the federal regulatory requirements.

We then developed an action plan for implementing the changes, which included target dates and accountable staff members.  We assisted in developing the required procedural documentation, assessed their technology integration and communication, provided training, and helped set up an ongoing risk monitoring program.

The bank passed their examination and lowered their overall operational risk in the process.  In addition, their new regulatory management infrastructure helps them incorporate new requirements on an ongoing basis.


Note: Actual client names have been removed due to confidentiality issues.