Seven Questions with Asurity Director of Marketing Events & Client Engagement, Darci Johnson!
Meet Darci Johnson! She’s the Director of Marketing Events & Client Engagement here at Asurity and last month, we celebrated her 23rd anniversary with our team!
Describe what you do at Asurity/SLG in 3 words or less.
DJ: Plan, Coordinate, Facilitate
What is your favorite thing about working at Asurity?
DJ: The people and being a part of how much the company has expanded and grown during my 23 years
How did you discover your passion for what you do at Asurity?
DJ: I have always been all about the details which is a big part of planning for events and conferences
What is the most interesting thing you’ve seen or read recently?
DJ: Sick Girl by Amy Silverstein – the story of a woman who had her first heart transplant at 25 and another at 50. A reminder that health is wealth in my book
What is something few people know about you?
DJ: I’ve run six (6) marathons and I jumped out of a plane… by choice 😊
What is one thing you love to do outside of work?
DJ: I love to work out. Having a fitness or nutrition goal & seeing it through makes me happy
What is your favorite sport to watch?
DJ: Red Sox baseball & golf
Loan servicing fees are charges imposed by loan servicers to manage and administer a borrower’s loan. These fees cover a range of services, including processing payments, maintaining records, providing customer support, and handling escrow accounts for property taxes and insurance. While these services are essential for the smooth operation of the lending process and recovering costs associated with servicing loans, the way these fees are structured and applied can pose potential borrower harm.
Loan servicing fees have long been a regulatory concern for several years. Since the beginning of 2020, all but one of the Consumer Financial Protection Bureau (“CFPB”) Supervisory Highlights[1]have discussed examination findings related to servicing fees. In addition, the CFPB has created an initiative to reduce what they call “exploitative junk fees charged by banks and financial companies.”[2]
The CFPB has expressed several concerns about servicing fees. First, the ”back-end” nature of servicing fees means that consumers may not factor such fees into their evaluations of the cost of credit even when the fees are accurately and appropriately disclosed in loan agreements. When announcing the junk fee initiative, CFPB Director Chopra said, “Many financial institutions obscure the true price of their services by luring customers with enticing offers and then charging excessive junk fees. By promoting competition and ridding the market of illegal practices, we hope to save Americans billions.”
Director Chopra’s remarks also highlighted a second CFPB concern with servicing fees. Regulators and consumers sometimes think the amount of the fee is substantially greater than the cost of providing the service for which the fee is charged. This stance is reflected in the CFPB’s Notice of Proposed Rulemaking (“NPRM”) on credit card late fees.[3]
Under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”), Congress established limits on penalties, such as late fees, and the Federal Reserve (“FRB”) promulgated rules prohibiting generation of more revenue from late fees than was necessary to cover the costs associated with delinquent payment. This rule established an inflation-adjusted safe harbor for late fees. The safe harbor for an initial late fee is currently $30 for the first past due payment and $41 for an additional late payment within six billing cycles. The CFPB NPRM would reduce the safe harbor to $8, cap late fees at 25 percent of required payments, and eliminate the automatic inflation adjustment.
A third concern is the assessment of servicing fees that were not accurately disclosed to borrowers or permitted by the loan agreement. As part of its efforts to eliminate improper fees, the CFPB issued an advisory opinion on “pay-to-pay fees.”[4] Pay-to-pay fees are convenience fees charged for online or telephone payments. The CFPB advisory opinion affirms that such fees are a violation of the Fair Debt Collection Practices Act[5] and Regulation F[6] unless the convenience fees are expressly authorized by the agreement creating the debt or expressly authorized by law.
How can loan servicers manage their risks associated with servicing fees? First, review your loan agreements and ensure all servicing fees are accurately disclosed to borrowers.
Second, examine policies, procedures, and practices related to fees. Servicers should ensure that any late fees assessed to consumers are consistent with loan agreements or consumer contracts. Charging fees in excess of contractual limits could be an unfair act or practice. The CFPB used similar practices as an example of unfair acts or practices in its Supervisory Highlights Junk Fees Special Edition (“Junk Fee Supervisory Highlights”),[7]
Third, ensure that late fees and other servicing fees are reasonable and proportionate to the costs of providing the service with which the fee is associated. In the CFPB’s Junk Fee Supervisory Highlights, charging a repossession fee that was substantially greater than the amount paid to a repossession vendor was described as an unfair act or practice.[8] The same publication described charging payment processing fees that exceeded the servicers’ costs for processing payments as both unfair and abusive.[9] Disproportionate fees are more likely to receive adverse regulatory attention.
Fourth, compare your fees to relevant federal, state, and local laws and regulations. Some state laws addressing unfair, deceptive, or abusive acts and practices include enumerations of specific acts or practices that are prohibited. If your institution is subject to a law that includes any loan servicing fees in its scope, make sure your contracts and practices are compliant.
Finally, evaluate your policies, monitoring, and testing related to fees and fee waivers. Since servicing fees are part of credit terms and conditions, loan servicing fees and fee waivers should be included in fair lending monitoring and testing. Policies related to fee waivers should be designed to ensure consistent treatment of borrowers. Differences in assessing or waiving fees on a prohibited basis should be investigated to determine whether there is a legitimate, nondiscriminatory rationale for the differences.
Loan servicing fees may seem like a minor detail in the grand scheme of lending costs, but their impact on borrowers and regulatory compliance can be significant. Prudent lenders will take note of the regulatory interest and evaluate their servicing fee practices along with related monitoring and testing. This is especially true with respect to fees associated with delinquency and default, which may increase financial burdens on consumers already experiencing distress.
Lynn Woosley is a Managing Director with Asurity Advisory. She has more than 30 years’ risk management experience in both financial services and regulatory environments. She is an expert in consumer protection, including fair lending, community reinvestment, and UDAAP.
Before joining RiskExec, Lynn led the fair banking practice for an advisory firm. She has also held multiple leadership positions, including Senior Vice President and Fair and Responsible Banking Officer, within the Enterprise Risk Management division of a top 10 bank.
Prior to joining the private sector, Lynn served as Senior Examiner and Fair Lending Advisory Economist at the Federal Reserve Bank of Atlanta.
In 2021, the Consumer Financial Protection Bureau (“CFPB”) issued a supervisory highlight outlining its concerns with the Waiver of Borrower’s Rights, a document historically included in Georgia closing packages. The CFPB found that use of the form, which requires borrowers to waive their rights to notice or to judicial hearing, is considered deceptive and violates the Consumer Financial Protection Act’s prohibition on deceptive acts or practices.
At that time, title companies and investors still required the document and the decision was made to continue including the waiver in Georgia closing packages with the option to remove it upon request. However, the Georgia Bar Association recently issued an updated title standard indicating that “the absence of an executed waiver or its attachment to the security deed as recorded shall not invalidate the security deed nor prevent the exercise of an otherwise proper power of sale.”
Based on the updated title standard as well as input from Georgia counsel, we have amended the form to remove the waiver of rights provisions and renamed it the Borrower’s Acknowledgement of Rights. The Borrower’s Acknowledgement of Rights will replace the Waiver of Borrower’s Rights in all Georgia closing packages effective September 18, 2023. If you wish to have the Borrower’s Acknowledgement of Rights removed from Georgia closing packages, please reach out to the Propel customer service team.
Washington, D.C. (September 14, 2023) - Asurity Technologies, LLC (“Asurity”), a leader in consumer lending compliance software and regulatory compliance and risk management services, announced today that seasoned banking executive Jennifer Creger has joined the organization as a Director of Asurity Advisory. Leveraging her proven track record in financial services, Jennifer will assist clients in solving consumer compliance challenges and addressing evolving industry priorities.
Jennifer most recently served as Senior Vice President of Compliance at Crescent Bank, where she played a pivotal role in shaping the bank’s Compliance Management System, BSA/AML OFAC program, and CRA strategic plan. Her responsibility for developing the bank’s enterprise risk management risk assessment program further highlights her holistic compliance risk management experience.
“We are thrilled to have Jennifer as a new member of our growing Advisory team,” said Grace Brasington, Senior Managing Director of Asurity Advisory. “Her unparalleled expertise in Fair and Responsible Banking, CRA, indirect auto lending, and AML, will undoubtedly enhance our ability to provide top-level advisory services to our clients.”
Asurity Advisory provides regulatory compliance services for financial institutions. The team of domain experts leverages its deep expertise to guide financial institutions through the complexities of regulatory compliance. Advisory services include: CMS Reviews, Fair and Responsible Banking, CRA, Crossing the $10 Billion Threshold, Fintech Compliance, Enterprise Risk Management, Operational Reviews/Process Improvement and more.
Jennifer stated, “Serving on the Asurity Advisory team is an incredible opportunity to be at the forefront of shaping compliance strategies in the financial services sector. I look forward to working closely with my new colleagues in assisting clients in mitigating risks and enhancing their efficiencies.”
Washington, D.C. (September 12, 2023) - RiskExec, Inc. (“RiskExec”) a subsidiary of Asurity Technologies, LLC (“Asurity”), today, announced that SoFi – the digital personal finance company – will rely on RiskExec’s software for compliance and reporting purposes.
RiskExec is a leading SaaS compliance and reporting platform designed for managing regulatory compliance for banks, mortgage lenders, credit unions, auto lenders, and digital lenders. The best-in-class solution quickly geocodes, runs edit checks, and with clean data, creates analyses to determine lending dispositions, compares to peers by market, and tracks performance towards achieving internally defined goals.
Angie Smedley, CRA Officer at SoFi, commented, “RiskExec’s enhanced geocoding functionality, customization options, and excellent customer support have allowed us to optimize efficiencies within our consumer loan review process, enabling us to continue improving the experience for both prospective and existing members.”
SoFi also uses RiskExec’s CRA module to track and report on the bank’s small business and Community Development loans.
SoFi is a digital-first personal finance company on a mission to help people achieve financial independence to realize their ambitions. SoFi’s mission and core values are consistent with the CRA regulation, and the company is committed to providing a robust CRA program that’s inclusive of lending, investment, and services, with a focus on meeting the credit needs of the communities within the Bank’s proposed assessment areas, including low- and moderate-income individuals and neighborhoods.
“We are pleased to have SoFi on our list of RiskExec users, and to see RiskExec successfully implemented and enhancing their CRA program. With a stringent, ever evolving regulatory environment, RiskExec prepares banks for regulatory examinations by analyzing trends and performance against internal goals, percentages inside versus outside assessment areas and more,” said Dr. Anurag Agarwal, PhD, President, RiskExec. “We look forward to continuing to provide SoFi with the most accurate, up to date analytics as possible to meet their CRA goals.”
For more information on RiskExec, contact us at info@asurity.com or (202) 765-2150.
How long have you been in the industry and what brought you to it? I have been working in the industry for over 7 years. My journey began when one of my university professors introduced me to the financial sector, where I worked for about 7 years. After that, I ventured into other areas such as wholesale and healthcare. Now, I find myself back in this fascinating industry, thanks to the ubiquitous presence of IT in various sectors.
Tell us a little about your role as senior software engineer? Over the course of my 17-year career, I've held roles closely tied to software engineering, contributing to the development of various application systems across different sectors. My extensive experience equips me to deliver high-quality work at Asurity, thereby making a meaningful contribution to the company's business expansion..
In your role, what motivates you each day? The opportunity to incrementally improve mortgage-related systems every day gives me a sense of satisfaction and constant motivation.
What inspires you most about the company? Above all, it's the supportive work environment that truly inspires me and keeps me engaged in my work.
What has been one of the most exciting projects you’ve worked on? Though my time here at Asurity has been relatively short, the project that stands out the most to me is RegCheck. This innovative project employs modern application development practices and unequivocally establishes itself as the leading force in the market.
What do you find unique about working at Asurity? One unique aspect is the fully remote work mode, which sets Asurity apart from many other companies. While others are moving towards hybrid work setups, Asurity's commitment to remote work is noteworthy.
What is something about you that most don’t know? I love cats and am seeking a chance to raise one.
If you could meet any celebrity, which would you meet? I would choose Ed Sheeran. While I might not know much about his personality, I am a big fan of his music.
What is your favorite type of music? I enjoy classical music while I'm programming and pop music when I'm looking to relax.
Where is the furthest you have traveled? I believe the furthest I have traveled is to the Southern Hemisphere, specifically Sydney, NSW, Australia. It's a place known for its wonderful weather throughout the year.
What are your hobbies? My hobbies are subject to change, but currently, I'm into swimming and hiking.
Washington, DC (September 1, 2023) – Asurity Technologies, LLC (“Asurity”), a leader in the design and development of consumer lending compliance software, is proud to announce that David Greenwood, Ph.D., Chief Technology Officer (CTO), has been selected as a 2023 HousingWire Insider. This award celebrates 75 operational leaders in housing who work behind-the-scenes to drive their companies and clients forward. The HousingWire Insider award recipients were selected by HousingWire’s selection committee based on their vital and dynamic contributions to their companies and the industry.
"I am deeply honored to be recognized as one of HousingWire's Insiders for 2023," said David Greenwood. “At Asurity, we are committed to driving meaningful innovation in the mortgage industry. This recognition is a reflection of our team's collective dedication to delivering technology solutions that address the evolving needs of lenders in an ever-changing regulatory environment."
As CTO over the past 6 years, David has spearheaded Asurity’s technology focus - cloud infrastructure, information security, and software development - and has been central to the system design and build of Asurity’s intuitive, interoperable, and flexible loan documentation solution, Propel™. In addition, David plays a pivotal role in defining all aspects of Asurity’s technology vision, strategy, and execution, ensuring its innovative compliance solutions meet rigorous standards for quality, security, and resiliency.
"We are thrilled to see Dr. Greenwood receive this well-deserved recognition," said Luke Wimer, Chief Operating Officer at Asurity. "David's vision and technical expertise have been instrumental in elevating Asurity to the forefront of mortgage technology innovation. We are proud to have him as a key member of our executive leadership team."
For over 25 years David has been at the forefront of information technology in fintech services. Prior to Asurity, David served as Chief Information Officer at Promontory Financial Group, where he had executive leadership over corporate information systems and business applications. David was also a Managing Director, Technology, in the U.S. tax business of PricewaterhouseCoopers, with a focus on leveraging new technology to deliver innovative products and services. Prior to PwC, David was a senior technology leader and business line CIO at Genworth Financial. He previously served as the Vice President of Architecture and Engineering at Federal Reserve Information Technology, leading a portfolio of application and infrastructure initiatives aimed at modernizing the U.S. payment system. He began his career at IBM, where he held a number of senior management and technology leadership positions.
David holds a Ph.D. from University College London and a Master of Science from Rensselaer Polytechnic Institute.
For more information on David Greenwood or Asurity, contact us at info@asurity.com or (202) 765-2150.
Effective September 20, 2023, supervised lenders and servicers of residential mortgages will be required to provide borrowers with an annual disclosure document informing them of their right to cancel or to terminate private mortgage insurance, in accordance with the provisions of the federal Homeowners Protection Act of 1998. The notice also must include the address and telephone number the borrower should use to contact the lender or servicer to determine whether cancellation of private mortgage insurance is available.
Washington, DC (August 17, 2023) – Asurity Technologies, LLC (“Asurity”), a leader in the design and development of consumer lending compliance software, is pleased to announce the integration of its cutting-edge mortgage document generation platform - Propel™ - with NotaryCam®, an industry leader in remote online notarization (RON) services and eClosing technology. As a result of this integration, Propel clients will now gain access to NotaryCam's RON and eClosing services, thereby reducing turn-times as well as the costs associated with loan modifications, while diminishing or even eliminating the need for overnight shipping of documents.
Widely known for its eClose360® platform, NotaryCam is recognized for its comprehensive support of online mortgage closings in all jurisdictions and across all closing scenarios, including RON, IPEN, or Hybrids. With a flexible workflow for document recording and top-notch identity verification and security measures, NotaryCam’s offerings ensure a seamless and secure closing process for borrowers and lenders alike. Additionally, the platform facilitates a modern, efficient closing process that can readily be implemented for a variety of loan products, including Home Equity Line of Credits (HELOCs).
"We are delighted to partner with Asurity in offering our state-of-the-art RON and eClosing platforms to the mortgage lenders nationwide that the Asurity team supports on a day-to-day basis. By leveraging our technology, Asurity's clients can now experience a more efficient and secure closing process," said Brian Webster, NotaryCam’s President.
At the forefront of driving innovation in consumer lending, Asurity’s Propel solution provides mortgage lenders with a dynamic, intuitive digital mortgage document generation platform featuring low- to no-code document creation, as well as an easily configurable forms library compliant with federal, state and local regulations as well as investor requirements.
"We are excited about Propel’s integration with NotaryCam. This integration brings significant value to our suite of SaaS solutions and provides an additional competitive advantage in today's loan origination market," said Julia Sweeney, Executive Vice President of Asurity Mortgage Group Software Products at Asurity. "It will deliver to our clients a seamless, secure, and efficient mortgage closing process, enhancing their overall experience and facilitating growth in a highly competitive market."
Washington, DC (August 15, 2023) – Asurity Technologies LLC (“Asurity”), a leader in the design, development, and delivery of consumer lending compliance software and services, is pleased to announce that global security program leader Scott Sykes has joined the company as Chief Information Security Officer (CISO). In this role, Scott will oversee all aspects of data security and compliance on an enterprise-wide basis.
Luke Wimer, COO at Asurity, said, “Scott brings a wealth of experience and a proven track record in information security, enabling us to further fortify our commitment to maintaining the highest level of cybersecurity for our clients and partners.”
Scott was previously CISO at Netcracker Technology and Tata Communications. In these roles, he steered compliance to satisfy stringent security requirements imposed by the U.S. Department of Justice and customer mandated specifications. Over his career, Scott has built and implemented global security programs, working closely with government regulatory bodies in the United States and European Union. In addition, he has developed and managed security organizations with operations in: Security Operations Center, GRC, Audits, Application Security, Infrastructure Security, and Customer Delivery. “I am excited to join Asurity at this pivotal time of growth,” said Scott Sykes. “The Company's dedication to digital innovation, client success, and maintaining the highest level of security standards aligns perfectly with my professional values, technical capabilities, and professional experiences. I look forward to collaborating with the product and service teams here to ensure Asurity remains at the forefront of cybersecurity.”
Scott's appointment underscores Asurity’s continuous efforts to provide best-in-class solutions to its clients while safeguarding their sensitive information. His arrival is expected to further elevate the Company's ability to navigate the complex landscape of cybersecurity regulations and related challenges. For more information on Asurity or its ecosystem of products and services, visit www.asurity.com, or email info@asurity.com.
