"Change is coming for real estate
tech: CFPB predictions"
!
Chris Hacker,
Co-Founder, General Counsel & Director of
Product Development at ShortTrack
!
Tweet: @myshorttrack
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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 Companies
Real Estate Attorneys
Real Estate Agents
even Inspectors…
Processes and controls need to be
in place to maintain compliance.

Title Companies
Top areas of concern:
• Closing Disclosure Form
Replaces 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
Private
Secure
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 platforms
Needed 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