cloudcamp chicago nov 2104 fintech - chris hacker’s "change is coming for real estate tech:...
TRANSCRIPT
"Change is coming for real estate tech: CFPB predictions" !
Chris Hacker, Co-Founder, General Counsel & Director of Product Development at ShortTrack !Tweet: @myshorttrack #cloudcamp
#cloudcamp @CloudCamp_CHI
Sponsored by
Hosted by
Chris Hacker@myShortTrack
FinTech meets RETech
Lending and Regulation
The Dodd‐Frank Act & the CFPB have placed increased emphasis on a lender’s responsibilities for ensuring that third‐party vendors are complying with consumer financial laws to avoid
consumer harm.
Third Party Service Providers
The long tail of the CFPB extends to third‐party service providers :
Title Insurance CompaniesReal Estate AttorneysReal Estate Agentseven Inspectors…
Processes and controls need to be in place to maintain compliance.
Title Companies
Top areas of concern:• Closing Disclosure FormReplaces HUD‐1 in non‐commercial financed purchase
• Three/”Seven” Day Rule: waiting period after the final disclosure is received by the consumer.
Increased liability for accuracy:Title needs to work with lenders early and often for final numbers and approvals
Data Security vs. Process Security
Data Security: • Cloud • SOC II• ISO
Process Security = Regulatory Compliance
• Consumer Financial Protection Bureau (CFPB)
• Federal Deposit Insurance Corporation (FDIC)
• Federal Reserve Bank (Fed)
• National Credit Union Administration (NCUA)
• Office of the Comptroller of the Currency (OCC)
• State (ex: Office of Financial Regulation)
Securing NPPI
NPPI: Non‐public personal information
PrivateSecure
Minimizing Human Error
Secret
Encrypt at REST Encrypt at transfer ‐ SSL
Automate recognition of NPPI ‐ “Sniffer”
Making the Cloud Secure
How do you make the Cloud Secure?
Encrypt Everything
Solution for RE/FinTech
Cloud
Interoperable cloud platformsNeeded to stay compliant
Email will still be dominant for the foreseeable future, so start with a notification system
Paperless closings are the future…
The Future of Real Estate closings
Application Solution:• Use cloud to collaborate in a role based transaction• Use a robust & secure notification system• Secure document storage and sharing• Manual and auto encryption options
Database Solution:• Field by field data encryption• Share data securely with out removing encryption