Posted on May 14, 2015 6:05pm PDT

As the auto finance industry grows, so does the pressure from the regulatory and compliance environment. Bridgeforce outlines how to manage regulatory risk in the areas of internal servicing operations and external third party vendors.

The Consumer Financial Protection Bureau has proposed an expansion that would put non-bank auto financing companies under supervisory oversight. Future regulatory changes in this growing industry will lead to significant changes for auto lenders.

In a new white paper titled “Navigating the Hazards of New Regulatory Expectations for the Auto Industry,” Bridgeforce provides insight into auto lending functions under regulatory review and how to track risks associated with installment loans and leases. According to Bridgeforce, “How aggressively all auto lenders proactively respond to the changing regulatory environment will help mitigate any negative implications and consequences the new scrutiny brings to the industry.”

Key sections of the paper include:

  • Managing internal servicing operations to ensure compliance with governmental regulations
  • The due diligence and continual oversight of third party vendors
  • Implementing a compliance management framework to reduce and manage errors

“In an ever-evolving regulatory environment, we know the importance of keeping ahead of the changes to protect lenders and their customers,” said Brian Reiss, President of Bridgeforce. “Companies in the auto finance industry have an opportunity to implement practices and procedures now that will help them gain a competitive advantage and avoid future fines and risks.”

Post Type: Press Releases