U.S.-based real estate financing companies, especially the global firms that face more complex regulatory risks, are continuously looking for new solutions.
Judging from client demand, “related risks gaining traction with multinationals as well as industry-specific risk issues” will persist in 2014, says Brian Loughman, the EY Americas leader for fraud investigation and dispute services.
Financial companies are expected to focus on several key themes that are now emerging more clearly.
1.
2. The impact of regulation on the financial services industry in general and mortgage companies of all sizes in particular will be stronger than ever.
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3. Anti-money laundering and corruption programs also are expected to face greater scrutiny, according to EY's fraud investigation and dispute services practice experts.
“Global regulators and the Department of Justice continue to press large, global financial institutions on the issues of money laundering, trade sanctions and bribery and corruption, stressing the need for robust program controls, sophisticated monitoring systems and knowledgeable personnel at the watch.”
It means regulatory scrutiny “is now moving beyond the traditional banking sector into nonbanks,” motivating these institutions to seriously review and enforce their compliance programs and controls.
4. Demand to leverage data related to compliance and anti-corruption will also motivate companies to rely more on analytics and “to ask new questions.”
Traditionally the domain of marketing and sales, data analytics are effectively migrating into “internal audit, compliance and corporate oversight,” as companies use forensic data analytics for proactive business monitoring. As a result, mortgage firms will develop “a better understanding of the risks and rewards of forensic data analytics” and how new techniques can be used to detect fraud and improve fraud risk mitigation programs.