Counsel’s Corner: Implementing Technology and Compliance

first_imgSign up for DS News Daily Previous: California Neighborhoods Endangered As Wildfires Approach Next: Fannie Mae Securities Update: A Billion-Dollar Offering Counsel’s Corner: Implementing Technology and Compliance Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / Counsel’s Corner: Implementing Technology and Compliance Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago WHAT ARE SOME OF THE WAYS THAT A LAW FIRM HAS TO TRY TO STAY AHEAD OF FRAUD?The most dangerous element in cybersecurity and fraud is the human interaction. Your weakest link is your weakest employee. The actual technology piece of cybersecurity is now widely available and is good, by and large, within most organizations. It comes down to the training of your people. If you look at the big frauds that are being committed, that’s where they’re coming from. They’re doing targeted fishing to get at your weakest link, and most often that is a company’s staff.It is a constant struggle to train your staff and keep them one step ahead of the fraudsters. It is not always easy, that’s for sure.The other critical piece is data-retention on cybersecurity and data breach issues. Lawyers, traditionally, have been of the theory that they’re going to retain all records forever. There’s obviously a direct business storage cost involved, although it’s less so now because you don’t have as much paper, but there is a cost, often tens or hundreds of thousands of dollars, for long-term server storage space. However, the biggest issue you’re going to see come about in the next couple years is a push by the major servicers to encourage or mandate data destruction. What they’re looking for is a way to limit the overall quantity of data that is compromised in the event of a breach.The way the world works now, everybody is going to be breached at some point in time. It’s not a matter of if, it’s a matter of when. Acritical review of how you control those issues, reduce your costs, and reduce your liability risk is so important to all of us. I would suggest that one of the primary ways to limit risk and thereby reduce potential liability is by eliminating PII as soon as it is not needed.My prediction is that, over the coming years, you will see more clients adopt a required destruction period. You will also see the cyberinsurance underwriters make the same type of recommendations. Because, as companies renew their cyber-insurance, they will start to see questions about how many data elements they actually have in their possession that are subject to potential breach. They will want to know how long the company retains them. The more private data elements the company has, the greater the risk. That will become super critical to the premium the company is going to pay.People in the credit card collections area have seen more of these data security issues because their PII tends to be more sensitive in nature because it’s comprised of credit card numbers and other more recent and actionable data for a fraudster. You get ahold of those elements, and you can use them much more effectively than mortgage related data. Of course, you could still use a social security number, but it’s not quite as easy as it is to use a credit card number to commit fraud. If the fraudster gets a loan number on a first mortgage, they can use it, but again, it’s not as risky. Our firm also runs a collections practice, and on that piece, we’re seeing compliance and audit review ramp up to make sure that we consolidate that data and keep it in as secure a vault as possible.FROM A COMPLIANCE STANDPOINT, WHAT DATA DO YOU NEED TO KEEP? AND WHAT DATA CAN YOU DESTROY?Every client has different contractual requirements, and you must go and read in detail what their specific requirements are. You are obligated to follow their rules by contract. Also, some clients may be on a specific litigation hold. Then you obviously have tax requirements—the IRS, for example, generally requires you to keep certain things for seven years. Employment records might be required to be retained for a year or two. It depends what state you’re in, how big of an employer you are; all those items factor into what kind of data you have to retain. Finally, as attorneys we all have record retention requirements placed upon us by the various state bar associations.The real question is, what do you do when all those periods pass? Are you, as a law firm, properly categorizing your data? The day after the need to retain it expires, what are you doing with it? We’re focusing heavily on how we deal with it. Editor’s note: This feature originally appeared in the October issue of DS NewsRichard Nielson manages compliance, information technology, and the Kentucky operations for Reimer Law Co. Nielson received his B.A. from Northern Kentucky University in 1989, and his J.D. from the Salmon P. Chase College of Law at NKU in 1993. He is licensed to practice law in Kentucky and Ohio. He is admitted to practice before the U.S. Court of Appeals for the Sixth Circuit, and the U.S. District and Bankruptcy Courts for the Eastern and Western Districts of Kentucky, and the Southern District of Ohio.Upon graduating from law school, Nielson founded the law firm of Nielson & Sherry, PSC. From 1993 to 2017, the firm grew to become one of the leading creditor’s rights firms in Kentucky. In early 2017, the firm made the strategic decision to merge with Reimer Law Co. based in Solon, Ohio.Nielson spoke to DS News about the challenges that servicers face, how technology is impacting the industry, and best practices for compliance.WHAT ARE SOME OF THE BIGGEST CHALLENGES THAT ARE FACING SERVICERS AND LAW FIRMS SO FAR THROUGH 2019?For the most part, default referral volumes have been down across the board for law firms. We’re seeing some rebound on that, but it has caused default firms across the country to re-examine business operations to see how they can gain more efficiencies in the process and deal with other issues related to a lower referral market. Lower volumes have caused many firms, including ours, to begin offering services in additional states. For example, Reimer Law recently expanded into West Virginia.As a firm, we also continue to expand into other practice areas related to real estate and lending. We have seen growth of our litigation, general collections, and auto and other chattel bankruptcy and replevin matters. It has been critical for us to go into new markets and diversify the firm overall to make sure that we don’t have all our eggs in one basket. Demand Propels Home Prices Upward 2 days ago HOW DO YOU APPROACH THE EXAMINATION, OR THE COST BENEFIT ANALYSIS, OF EXPANDING INTO ANOTHER STATE?There are two approaches to that. There’s the opportunity-based approach, where a firm might get approached by another firm to merge with them. A lot of the times, those mergers aren’t geographically contiguous.We have not taken that approach. Instead we have chosen to look at geographically contiguous states for expansion possibilities. We will only expand into markets that make sense for us within our regional footprint. We’re not interested in opening in Puerto Rico, for example. So, West Virginia was a perfect fit for us. It is contiguous to both Ohio and Kentucky, and in general, the laws and customs are somewhat similar. We continue to look for other regional opportunities that might make sense for the firm long term.Much of the expansion decision is client driven. As volumes have gone down, the clients are also looking to economize on their compliance departments, their audit departments, and their attorney-management issues in general. As a result, many are looking to reduce the number of law firms they retain nationwide. For us, the decision to expand into West Virginia was driven mostly by client requests, because West Virginia volumes are small, relative to what other states see. We had multiple clients asking us to get in there simply because it alleviates some of their audit issues. They only stop once to audit a firm handling multiple states. This reduces their costs and administrative burden. About Author: Mike Albanese  Print This Post Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. center_img in Daily Dose, Featured, Print Features The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago 2019-10-29 Mike Albanese Subscribe October 29, 2019 1,117 Views Share Save Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago WHAT ARE SOME OF THE WAYS THAT ADVANCING TECHNOLOGY IS CHANGING HOW LEGAL PROFESSIONALS INTERACT WITH SERVICERS ABOUT THEIR PARTIES THAT ARE INVOLVED IN DEFAULT SPACE?There’s a lot of change going on in the IT world and how compliance interacts with that—disaster recovery, business continuity issues, data breach, cybersecurity issues. They are all huge issues and their impact is growing every day. The fraudsters get better and better at everything they do, and so we must be vigilant on those issues.AI is something that law firms are finally starting to explore, and I think the technology is finally catching up with a lot of AI possibilities. Many of us are looking at artificial intelligence projects wrapped around military and bankruptcy searches—how the name searches are structured, and what kind of intelligence we can use to do those searches. We can also use AI to automate processing of new referrals. In a lot of ways, many of these more mundane processes in our industry, and law practice in general, are going to be replaced by artificial intelligence in the coming years.last_img read more

Kids Fishing Day to be held on Father’s Day weekend

first_imgLatest Stories Kids Fishing Day to be held on Father’s Day weekend By Jaine Treadwell You Might Like Email the author Print Article Remember America’s heroes on Memorial Day The Penny Hoarder Issues “Urgent” Alert: 6 Companies… Around the WebMd: Do This Immediately if You Have Diabetes (Watch)Blood Sugar BlasterIf You Have Ringing Ears Do This Immediately (Ends Tinnitus)Healthier LivingHave an Enlarged Prostate? Urologist Reveals: Do This Immediately (Watch)Healthier LivingWomen Only: Stretch This Muscle to Stop Bladder Leakage (Watch)Healthier LivingRemoving Moles & Skin Tags Has Never Been This EasyEssential HealthTop 4 Methods to Get Fortnite SkinsTCGThe content you see here is paid for by the advertiser or content provider whose link you click on, and is recommended to you by Revcontent. As the leading platform for native advertising and content recommendation, Revcontent uses interest based targeting to select content that we think will be of particular interest to you. We encourage you to view your opt out options in Revcontent’s Privacy PolicyWant your content to appear on sites like this?Increase Your Engagement Now!Want to report this publisher’s content as misinformation?Submit a ReportGot it, thanks!Remove Content Link?Please choose a reason below:Fake NewsMisleadingNot InterestedOffensiveRepetitiveSubmitCancel Published 6:25 pm Tuesday, June 4, 2019 Pike County Sheriff’s Office offering community child ID kits Registration begins at 7 a.m. June 15 and fishing will begin at 8 a.m. and conclude at 11 a.m.Participating children should bring a hat, sunglasses, bait, a rod and reel or pole and an ice chest for fish.Jerry Jinright, Alabama Conservation Enforcement Officer for Pike County, expressed appreciation to the Dorrills for their generosity in hosting the annual Kids’ Fishing Day. Sponsored Content Although there are no 100 percent guarantees that a kid will catch a stringer of catfish on Kids’ Fishing Day, if a kid doesn’t catch a fish at the Dorrills’ pond, they probably didn’t chew their bait, the officer said.“The Dorrills’ pond is well stocked with catfish and I mean with big ones,” Jinright said. “But just to make sure that every kid has a better than good chance of catching fish, the Dorrills have a big tank of around 200 catfish delivered and added to the pond.”The kid with the hook in the water will have the say as to what kind of bait is on the hook. However, Jinright said the bait of choice is traditionally Catfish Charlie or chicken livers.“We’ll have three age groups and the kid with the heaviest stringer of fish in each age group will win a prize,” Jinright said. “All the kids who fish will have their names entered in the drawing for two $50-prizes donated by Walmart to be used toward the purchase of bicycles.” School board developing plan for new Banks School Pike County school board officials have developed a plan for the merger of Bank Middle and Banks Primary schools and… read more Book Nook to reopen By The Penny Hoarder Plans underway for historic Pike County celebration Of course, every kid who fishes will have the opportunity to win a prize designed for fun in the outdoors.“Walmart will have lunch for the kids so it will be a fun day all around,” Jinright said. “We invite dads and moms, grandparents or other family members to bring a kid fishing at Clay Hill Farms on Saturday, June 15. It will be a day long remembered.”Pike County Kids Fishing Day is sponsored and hosted by Walmart, Alabama Conservation Enforcement Officers Association and the Alabama Wildlife and Freshwater Fisheries Division The event is partially funded by the Federal Sport Fish Restoration Program. Editor’s Note: Directions to Clay Hill Farm, from Troy, south on Highway 231, left on County Road 5522. Turn right onto County Road 5511 and left onto County Road 5523 (Norman Wilson Road). Clay Hill Farms is 1.4 miles on the left. Directions from Brundidge are north on Alabama 93, left onto County Road 5523 (Norman Wilson Road), 1.4 miles to Clay Hill Farms on the right. Pike County Kids’ Fishing Day at Clay Hill Farms has become a Father’s Day tradition for many families throughout the county.John and Carol Dorrill of Clay Hill Farms at Pronto will, once again, host Kids’ Fishing Day the Saturday before Father’s Day, June 15.The free Kids’ Fishing Day event is open to all kids ages, five to 15 who are accompanied by a parent or other responsible adult. Troy falls to No. 13 Clemsonlast_img read more