If you’ve ever been behind the wheel of a car, chances are you’ve come across unexpected roadwork. In order to avoid delays that cost valuable time, it is often necessary to abandon or change your roadmap. You may be forced to navigate unfamiliar roads as you try to reach your destination in the most efficient way possible.
This is exactly what happened to the default mortgage servicing industry over the past five years. Before 2011, law firms had little use for formalized training and compliance programs. Compliance training seemed stuck in a rotary because law, regulations and client requirements had always rigidly governed law firms. Training methods and content varied, and the majority of law firms did not have a learning management system (LMS).
The founding of the Consumer Financial Protection Bureau (CFPB), along with several other key events, heralded a drastic change to the landscape of the mortgage industry. Regulatory oversight forced firms in this industry to document and train staff on rapidly evolving and varying requirements.
Road Block
Initially, you can expect resistance from an industry that operated for many years without a need for a formalized training program. Transitioning to a high level of scrutiny by federally regulated clients demands a well-established, formal training program. The challenge is to incorporate these new training requirements into daily operations without affecting the ability to focus on the primary obligation – providing quality services to your clients. If your clients are conducting on-site operations audits and examining compliance programs, you are probably required to provide evidence that employees received adequate education on specific topics. An LMS is essential to manage the assignment and tracking of training.
Despite this new tool, compliance percentages may remain low at first. Managers and employees alike may struggle with implementation due to both time and resource constraints. New training requirements present significant challenges for management to commit time and effort to an area that is not directly related to the provision of services. Your department may face an uphill journey encouraging the company to embrace this new culture. Push ahead with support and consistent reminders of the various services and tools available for tracking and evidencing training compliance.
Recalculating
Eventually your team will begin to show appreciation for the available training. Audit findings may require the use of enhanced reporting from the LMS, which forces employees to become accountable for their training. This may usher your company into a “check the box” mindset, where minimum training requirements are met, but the organization still struggles to design and incorporate training programs unique to their operations. At that point, it is helpful to identify opportunities to demonstrate how the LMS adds value to your operations, including creating certifications to ensure a well-developed and consistent base of knowledge for each employee.
New Route
In order to boost participation and engagement, you may want to introduce competition into your training program. Use monthly reports to measure the training compliance percentage across your organization. The first department to reach 100 percent compliance, or closest to, in a specified reporting period, could receive a trophy, or company-wide recognition. As teams watch others earn these prizes, a friendly rivalry may emerge, and more employees will complete their trainings. The monthly incentive, combined with continued client audits, encourages management to climb into the driver’s seat of their own training programs.
Further Down the Road
Set goals to drive your organization into developing their own department-specific programs and taking full responsibility for their training programs. Ideally, managers will link training goals to company strategy, closely monitor their staff, include training results and compliance in performance reviews, and actively engage in the training process to meet specific training goals, as well as to identify areas of improvement.
No matter the roadmap with which a training program starts, external forces can always force re-evaluation of the route. Organizations need to collaborate with both executive management and the company departments in order to navigate your new landscape.
Lisa Elkins and Janet Smith work for the LOGS Governance, Risk and Compliance Training Department in Connecticut.
