Issue link: http://dsnews.uberflip.com/i/1345366
61 risks because it permeates throughout the lifecycle of this business, from that first conversation that you have with the customer prior to origination, all the way through the end-of-life of servicing. But there are three big things that I would highlight from a risk perspective. Firstly, operational risk in a macro sense. e volume and cyclical nature of the business can strain the capacity of operating systems, processes, and personnel. at's something that we've seen over the last year, as we've seen record volumes coming out of this lower-rate environment. And we're in the midst of what we assume will be another six to eight months of continued high volumes. How are we controlling to meet that demand from a process, operating, and system perspective to serve our customers across the industry? Secondly, there's cybersecurity. It's just a completely different world from a cybersecurity perspective. We've seen bad actors shift their tactics as we've gone to a work-from-home environment. So, the need to protect against those cyber-related risks is very important. And I think it's going to shift again, as we see changing employment practices and where employees are working. How do you stay in front of that, and how do you balance the cyber-risk associated with meeting the demands and the needs of employees working in a more remote environment? e last big one comes back to the compliance space. I could talk about compliance risk that permeates throughout the lifecycle, but one of the key things, as we talk about the CFPB, is to understand where they might be focusing. e acting director, the last week in January, pushed out a blog post that outlined his strategic priorities and where the CFPB is going to look to take action. First, they did some dedicated reviews coming out of the CARES Act, which they called priority assessments. Based on what they saw as lagging practices, they're going to start digging in within that space. So, from a servicing standpoint, that means incomplete and inaccurate information related to forbearances, as well as applying payments when forbearances and deferment should have applied. Finally, another big focus will be on racial equity and the changing nature that we'll see from a fair lending enforcement standpoint. "When you're talking about the mortgage space, it's tough to focus on just a few risks, because it permeates throughout the lifecycle of this business, from that first conversation that you have with the customer prior to origination, all the way through the end of life of servicing."