Summary
The article points out that the induistry is evolving, participants roles are changing and regulatory requirements are not being recognized. The article seeks to raise awareness of both participants and regulators.
Analysis
While the article rightly points out overlooked regualtion due to the evolution of the industrym it does not address regulatory requirements that are overlooked by participants whose roles are not changing in the industry.
Many settlement brokers are unaware of annual reporting requirements in the various states in which they do business. Of particular note is North Carolina whose reporting deadline in June 1st, setting it apart from the bulk of states with reporting requirements whose filing deadlines are in March. These brokers are not only unfamiliar with what should be reported; they are often unaware that there is a reporting requirement that applies to them at all. These oversights lead to a lack of compliance tha while perhaps not intentional, is still non-compliance. The recent trend among state regulatory agencies to end notification programs for reporting and licensure renewals is not helping the situation.
Many industry participants do not file notices of changes to their addresses, ownership, or management as required in regulated states.
These oversights are not the result of shifting roles in the industry but rather a lack of attention to these compliance details. This lack of attention may be driven by an inadequate grasp of the regulatory requirements or the use of untrained support staff for these functions.
Historically, provider companies have been more consistent in their filing of annual reports. This may be due to providers having larger and presumably more experienced staff. Another rationale is that providers' annual reports are often tied to their licensure renewal. Thus, a provider company files it's annual reports and pays it's renewal fees, ensuring continued licensure all in the same filing. Perhaps regulation of the industry could be better managed if all states tied reporting to licensure renewal for both provider companies and brokers on a consistent time frame. But first and foremost, industry participants must ensure that they are thoroughly familiar with regulatory requirements beyond initially obtaining their licenese and that they are meeting these requirements.
