Regulatory change management for lenders: every new rule scoped to your products and states, and owned the day it lands
Every new rule scoped to products and states, and owned the day it lands.
See one case, screen by screen ↓Software that tracks new laws, rules, guidance and enforcement orders, decides which ones apply to your institution, and follows each one through to updated policies, procedures, systems and controls before its effective date. Regulatory Change Management adds agents that read every item, score it against your products and states, map it to policy sections and controls and assign owners, so the analyst’s time goes on the calls that need judgement.
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New laws, proposed rules, bulletins and enforcement orders arrive every week from several federal agencies and every state you lend in. Each one has to be read, matched to the products you sell and the states you sell them in, and turned into policy, procedure, system and training changes before its effective date. Most of them do not apply, but someone still has to read them all to find the few that do.
Today that runs on an alert email, a spreadsheet and a weekly meeting. The analyst matches each rule by hand to products, states and hundreds of policies and procedures. Ownership is negotiated by email, due dates are set late, and the evidence of the assessment lives in a spreadsheet, so when an examiner asks to see how a change was assessed and closed, the answer takes days.
Estimated split for one rule that applies to several products, by email and spreadsheet and with the solution.
Seven agents read, score, map and assign every new rule; the regulatory change lead confirms the scope.
Kestrel Bank lends in nine states across seven products. At 08:02 on Tuesday, October 13, the Federal Register publishes the Regulation Z 2027 annual threshold adjustments. Here is what happens next, screen by screen, in the working solution.
Nadia opens the impact matrix: rules, laws and orders down the side, Kestrel’s seven products across the top. 8 open changes, 16 owned tasks, 2 at risk, and 3 items waiting for her call. Overnight the feed reader went through 38 items and none of them applied. A new item is at the top of the rail: Regulation Z, 2027 annual threshold adjustments, not read yet.
Run log, 07:30: “Read 38 overnight items — 0 apply, 38 do not apply, each with a reason.”
The feed reader reads FR Doc. 2026-20417: a CFPB final rule, 6 pages, 14 dollar thresholds, effective January 1, 2027. The applicability scorer marks it applies: consumer credit, 6 of 7 products in scope, all 9 states. The impact mapper searches 312 policies and procedures and 486 controls and finds 5 policy sections and 5 controls. Auto loans: no change.
Every step shows what it found and how long it took.
First mortgage, home equity loan, HELOC, credit card and personal loan light up on the Regulation Z row, each with the impact in a few words, the policy section, the owner and the date: HOEPA $28,268, QM tier $141,320, late fee $33/$44, exempt above $73,400. Owners come from the ownership map. The deadline watcher starts the clock: 80 days to January 1, a nudge on December 2, an escalation on December 18.
“Owner assigner — 5 owners · From the ownership map · due Dec 11 (effective − 21 days)”
The first mortgage cell opens its impact: the high-cost (HOEPA) total loan amount threshold rises from $27,592 to $28,268 and the points-and-fees trigger from $1,380 to $1,414, with the rule text quoted. It touches MTG-POL-118 §3.2 of the High-Cost Mortgage Policy, control CTL-MTG-031 (the pre-closing high-cost test) and the high-cost test table in the loan origination system. Daniel Okoye owns it, due December 11, with three tasks.
Nadia opens the rule as published. Each highlighted passage carries a margin note from the impact mapper: the product, the policy section, the old and new value and the owner. The rail shows the effective date, the scope (small business struck out as out of scope) and all five owners, due December 11.
Auto loans, reviewed with no change: “Largest auto balance $68,450; all under the $73,400 exemption threshold.”
Nadia confirms that the rule applies to 5 products in all 9 states, that auto loans need no change and small business loans are out of scope, and that the 5 owners are right. Her electronic signature records the meaning with it.
“Signed as Nadia Ferreira, regulatory change lead. Meaning: scope reviewed and confirmed. The redlines go to their owners.”
The rule shows “Scope confirmed · 08:14”. The five margin notes move to In progress, and each owner has a redline of their section waiting. The same rule went from the Federal Register to confirmed, owned work in twelve minutes.
Daniel sees MTG-POL-118 §3.2 with the rule passage that drives it, the current text struck through and the proposed text with the 2027 values. Control CTL-MTG-031 is retested after the change goes live. He can approve, edit the wording or send it back to the redline drafter with a note.
The redline drafter only drafts. Nothing is published until the policy owner approves.
One lane per owner, each task a bar to its due date and each effective date a flag: 28 open tasks across 9 changes, 2 at risk, 0 overdue. The HELOC piece of the OCC reconsideration of value bulletin is at risk: the 30-day answer clock is not yet set up, so at 06:00 the deadline watcher escalated it to Victor Hale, 17 days before it takes effect.
The Q4 change summary for the Risk Committee meeting on November 18 is drafted from the matrix: 9 open changes, 28 owned tasks, what takes effect this quarter, what is at risk and what the order against another lender means for Kestrel. Five sections and 14 citations, each line tied to its rule and task. Victor signs it before it goes into the committee pack.
The same rule changes, seen by five of the people who carry them — what their week looked like, and what it looks like now.
Seven agents read, score, map and assign every new rule; the regulatory change lead confirms the scope.
Reads the Federal Register, 9 state registers and legislatures, regulator bulletins and enforcement orders every 30 minutes, and extracts what changed, who issued it and when it takes effect.
Scores each item against the product and state footprint: applies, may apply or does not apply, with the reason in one sentence.
Maps each applying change to the policy and procedure sections, controls, systems and forms it touches, quoting the rule passage and the policy passage side by side.
Assigns each lit cell to its owner from the ownership map, or the backup when the owner is away, and sets the due date 21 days before the effective date.
Drafts the smallest wording change that brings each affected policy or procedure section in line with the rule, showing old and new text in the house style.
Counts down every effective date and task due date each morning, nudges owners at 30 days and escalates open work to the Chief Compliance Officer at 14.
Keeps the quarterly change summary for the board’s risk committee current: open changes, what takes effect this quarter, what is at risk and what closed, every line cited.
Confirms the scope. The agents propose; a named person decides.
Anyone on the compliance team can ask in plain words, or tell it what to change. Answers cite the rule and the task they rest on.
What changes for us in the new Regulation Z update?
Five products, one date: January 1, 2027. The high-cost (HOEPA) trigger moves to $28,268 and the points-and-fees trigger to $1,414, which touches first mortgages (MTG-POL-118 §3.2) and HELOCs (HE-PRO-061 §2.4). The QM 3 % tier starts at $141,320 for home equity loans; the card late-fee safe harbor becomes $33 / $44; personal loans above $73,400 are exempt. Auto loans are reviewed with no change. Each has an owner, due Dec 11.
Which changes could miss their effective date?
Two are at risk. OCC reconsideration of value, HELOC: effective Oct 30, the 30-day answer clock is not set up; Marcus Bell, due Oct 16. Ohio HB 214, personal loans: effective Nov 30, note form CL-OH-04 not yet ordered; Tomás Rivera, due Nov 9.
Our auto balloon loans can top $73,400 — add Auto to the Reg Z review
Done. Balloon auto loans reach $81,200 at the top of the range, above the new exemption threshold. Auto loan is now lit on the Regulation Z row: AUT-PRO-012 §2.2, owner Luis Ortega, due Dec 11. The change and the reason are on the record.
Draft the Q4 board summary
Drafting it from the matrix: open changes, what takes effect this quarter, what is at risk and what closed, every line cited to its rule and task. Victor Hale signs it before it goes to the risk committee.
13 screens from the working solution, on its sample data. Pick one to see it large.
Sources, verdicts, clocks, owners and approvers are settings, changed by the compliance team.
| Setting | Default | Choose from |
|---|---|---|
| “May apply” goes to | Nadia Ferreira | Nadia Ferreira · Victor Hale |
| Proposed rules | Score and track comments | Score and track comments · Score only |
| Second look at “does not apply” | 5 % sample weekly | 5 % · 10 % sample weekly · Off |
| Due date for owners | 21 days before | 14 · 21 · 30 days before the effective date |
| Nudge the owner | 30 days before | 30 · 45 days before |
| Escalate to the Chief Compliance Officer | 14 days before | 14 · 21 days before |
| Confirm scope of a change | Nadia Ferreira | Nadia Ferreira · Victor Hale |
| Approve a redline | Policy owner | Policy owner · Policy owner and Nadia Ferreira |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample bank data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Thomson Reuters Cost of Compliance 2019: about 217 regulatory alerts a day for a typical financial services firm; cdbanks.org: 653 hours, 1.86 FTE, for an average community bank to absorb the 82 regulatory changes of Q3 2014). People, banks and lenders named on this page, including Kestrel Bank and Ridgemoor Auto Finance, are fictional — characters and sample data in the working solution.
Software that tracks new laws, rules, guidance and enforcement orders, decides which ones apply to your institution, and follows each one through to updated policies, procedures, systems and controls before its effective date. Regulatory Change Management adds agents that read every item, score it against your products and states, map it to policy sections and controls and assign owners, so the analyst’s time goes on the calls that need judgement.
The applicability scorer compares the rule’s scope — products, borrowers, states and entity type — with your product and state footprint. It returns applies, may apply or does not apply, with a one-sentence reason. It never closes a “may apply” itself; the regulatory change lead decides.
Yes. It reads the Federal Register and the registers and legislatures of every state you lend in, with bills tracked from introduction, plus regulator bulletins, press releases and enforcement orders against other lenders. You can switch the matrix from products to states, and the footprint view shows which open changes would apply if you started offering a product in a new state.
No. The agents have read-only access to policies and procedures. The redline drafter proposes the wording change with the old and new text, and the owner of the policy or procedure approves, edits or sends it back.
Yes. The regulatory change lead confirms every scope with an electronic signature, policy owners approve every redline, and the Chief Compliance Officer signs the board summary and is the only one who can move a date. The agents propose; named people decide.
Every item read has a verdict and a reason, every impact quotes the rule and the policy section, and every scope signature, redline approval and closed task is on the record. Internal audit can follow the trail from the rule to the closed task and export it.
Yes. Owner due dates, nudges, escalations to the CCO, who decides “may apply” items, how proposed rules are tracked, the weekly second-look sample, the ownership map and the approvers are all settings.
The Agentic Solution Engine builds and deploys it from your requirements — your product and state footprint, policy and procedure library, control inventory and ownership map — and it goes live once every quality gate has passed. We will walk you through it on your own footprint and recent rules first.
One question, all fifty states at once, every answer cited to the rule it comes from.
1-min demoHMDA and 1071 Data ValidationEvery record checked against the file, not a sample, before filing.
1-min demoFair Lending Exception MonitoringEvery exception reasoned at the time, not explained a quarter later.
1-min demoWe’ll run Regulatory Change Management on your own footprint, policy library and the last month of rules.