CORE COMPLIANCE MATRIX
®

OuCORE Compliance Matrix® is regarded as an industry standard.

Lenders Compliance Group is a leader in monitoring regulatory compliance for the mortgage and lending industry.

We created and pioneered the well-respected risk management tool, the CORE Compliance Matrix®. This unique analysis provides a comprehensive assessment of an institution's compliance with federal and state regulations and also offers quantitative ratings of regulatory risk.

A CORE® review consists of an in depth examination of a financial institution's Compliance Program (C), Organizational Structure (O), Regulatory Risk (R), and Enforcement Strategies (E). This makes possible a proactive analysis of its regulatory, legal, and operational conditions and indicates the required corrective actions. The CORE® review is conducted by our professional Compliance Manager in coordination with the institution's compliance personnel and management.

CORE COMPLIANCE RATINGSTM

The CCM® generates an actual risk rating, a quantitative result that is called the CORE Compliance Rating® (CCR). The CCR reflects the risk management performance of certain aspects of the loan origination platform. At the completion of a CORE® review, each element affecting regulatory compliance is rated and given a CORE®

CORE COMPLIANCE RATINGS - COMPOSITE DESCRIPTIONS 

CCR 1 Strong performance and risk management practices relative to institution's size, complexity, and risk profile. Substantial compliance with laws and regulations. No regulatory concerns. Any weaknesses are minor and can be handled in a routine manner by management. CCM components are rated either 1 or 2.

CCR 2 Overall risk management practices are satisfactory relative to institution's size, complexity, and risk profile. No material regulatory concerns. Only moderate weaknesses are present and well within management's capabilities and willingness to correct. No CCM component is given a risk rating more severe than 3.

CCR 3 Risk management practices are less than satisfactory relative to institution's size, complexity, and risk profile. Some degree of regulatory concern in one or more areas of the CCM. Significant noncompliance with laws and regulations. Failure appears unlikely, but institution exhibits weaknesses that may range from moderate to severe. No CCM component is rated more severely than 4.

CCR 4 Risk management practices are generally unacceptable relative to institution's size, complexity, and risk profile. Unsafe and unsound practices or conditions. Matrix deficiencies result in unsatisfactory performance and significant noncompliance with laws and regulations. Failure is a distinct possibility if problems and weaknesses are not satisfactorily resolved.

CCR 5 Inadequate risk management practices relative to institution's size, complexity, and risk profile. Extremely unsafe and unsound practices or conditions. Matrix findings indicate critically deficient performance. Volume and severity of problems are beyond management's ability or willingness to correct. Immediate assistance is needed to avoid failure.