Lending Compliance Officer - Role & Responsibility

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Question:

Can you define the role of the lending compliance officer? Is it the lending compliance officer’s responsibility to see that internal lending policies are being followed and should they be responsible for keeping the policy updated?

Answer:

No two banks do things the same way, and position descriptions are entirely up to your bank. To the extent that consumer lending policies address (or should address) fair lending, required disclosures, etc., it's hard to imagine why you wouldn't want your lending compliance expert involved in policy development. Policy testing should be the auditor's domain, but many banks expect their compliance officers to perform quality control tests. My preference is that each business unit should perform its own quality control, keeping control close to the business managers who have the staff and resources necessary to effect changes when needed.

First published on BankersOnline.com 2/22/10