Mortgage lending, appraisal programs, and capital management strategies were among topics addressed at the 2025 American Bankers Association Risk and Compliance Conference, which Forvis Mazars recently sponsored and presented at in Indianapolis. The conference drew around 2,000 attendees and hosted more than 40 sessions covering a variety of risk, compliance, and other related topics. Professionals at Forvis Mazars participated in three of those sessions detailed below.
Amid the wide range of topics covered during the multiday conference, several key takeaways emerged. First, risk and compliance teams must proactively prepare for the growing influence of artificial intelligence (AI) on the financial sector. AI is rapidly transforming how banks approach risk management and compliance, shifting from reactive oversight to proactive, intelligent systems. Second, despite a potential dip in federal enforcement and the rollback of some federal guidance, regulatory expectations remain unchanged, making it essential for institutions to maintain robust processes and controls. Third, a prime way to strengthen a second line of defense is to solidify the first line of defense. In the current environment, keeping all lines informed and included in change management workflows and topics should be a priority for fintech. Finally, with the permanent integration of fintech and Banking as a Service (BaaS) into the financial ecosystem, institutions must fully understand the associated risks and take deliberate steps to mitigate them.
Beyond the overarching insights, we’ve outlined a quick snapshot of the themes discussed across the three sessions in which our professionals participated.
Navigating the Mortgage Compliance Maze
The mortgage lending compliance landscape is increasingly complex, with uncertainty around the Consumer Financial Protection Bureau (CFPB) impacting both traditional and non-bank lenders. Limited resources among practical regulators highlight the need for strong compliance management systems and effective monitoring. Internally, banks are seeking efficiencies to manage higher-risk areas without sacrificing compliance. Fair lending remains a priority, requiring a solid grasp of local data and demographics. Even after a decade, weaknesses in documenting ability-to-repay pose growing risks. Mortgage lenders must also remain vigilant under the Real Estate Settlement Procedures Act (RESPA), Section 8—following others’ questionable practices is no defense. Finally, compliance officers are encouraged to shift from gatekeepers to problem solvers. Being a “how-to” partner helps foster collaboration and build trust.
Appraising Your Appraisal
Regulatory and investor scrutiny around appraisal practices is intensifying, demanding more robust oversight and updates to monitoring procedures. Compliance and risk teams must now incorporate more rigorous assessments to detect appraisal bias and help ensure the appropriate protocols are in place for handling reconsiderations of value (ROVs) ahead of exams. While the emphasis on valuations and consumer protection remains firm, lenders must prioritize transparency by informing consumers early in the loan process about how valuations can affect loan terms and their right to challenge them if discrepancies arise. A well-documented valuation process, clearly outlining when a second appraisal or ROV may be initiated, is no longer optional—it’s foundational. To stay ahead of risk, lenders should actively monitor valuation procedures and analyze completed appraisal data to help ensure integrity, fairness, and compliance across the board.
Capital Management: Staying in the Driver’s Seat of Evolving Metrics & Risks
Even in the current climate of deregulation, capital management continues to be a core focus for regulators, with many public enforcement actions highlighting it as a critical concern. Examiners are now looking beyond documented policies and procedures, focusing instead on whether senior management and boards receive clear, accurate, and timely information about the institution’s capital position. This includes understanding current levels, risks, and projected capital needs under various scenarios to guide dividend planning and strategic decisions. A broad approach to identifying capital risks, which includes drawing input from across business lines, is essential. While smaller institutions may lean on scenario analysis instead of formal stress testing, the ultimate priority is helping ensure leaders are equipped with the insights they need to make sound, forward-looking decisions.
How Forvis Mazars Can Help
Financial executives face both challenges and opportunities in today’s dynamic risk and compliance market. As you shape your organization’s future, having a solid plan in place is essential for navigating evolving conditions. Forvis Mazars is here to support you. Our team specializes in designing and implementing risk frameworks, data, modeling, analytics, and technology to help you effectively unlock value for enterprise risk management. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.