Cyber security threat of a hacker trying to commit a data breach into a mortage company's loan servicing software system and private data.

With Cyber Attacks Increasing, How Safe Are Your Operations?

By now, everyone in our industry has heard about the growing risk of cyberattacks and data breaches. But with several recent incidents involving mortgage servicers, title companies and other industry participants, the dangers are increasing by the day.

As servicers grapple with this evolving threat, understanding the characteristics of a secure technology solution and the significance of third-party compliance is crucial. But first, it’s important to know what we’re up against.

The Risk is Real

The proliferation of cyberattacks targeting the mortgage industry poses an enormous threat to consumers as well as the operational integrity of servicers. Even some of the sector’s largest organizations, such as loanDepot, Mr. Cooper and LoanCare, have experienced data breaches, demonstrating that no company is immune.

These breaches not only endanger the privacy and financial security of borrowers, they also disrupt essential servicing functions, such as payment processing, investor reporting, and loss mitigation activities. The repercussions are far-reaching and go beyond financial losses to reputational damage and regulatory scrutiny.

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And the problem isn’t going away. According to a recent report by the International Monetary Fund (IMF), the global financial sector experienced more than 20,000 cyberattacks over the past two decades that have caused more than $12 billion in losses. And since the COVID-19 pandemic began, the number of cyberattacks doubled, the IMF found.

One of the issues is that cybercriminals are constantly coming up with new ways to exploit vulnerabilities in technology infrastructure to access sensitive data. But for mortgage servicers, one of the biggest factors behind the ability to protect sensitive data is their choice of mortgage servicing technology.

a mortgage company employee works on a laptop on their cybersecurity systems.
Advanced Cybersecurity: Encryption and Digital Data Protection, Biometric Authentication and Cloud Protection for mortgage loan servicers.

What Your Platform Needs

Great servicing technology shouldn’t just help streamline your operations, improve profitability and reduce costs. It should also help mitigate the risk of cyberattacks and safeguard your borrower’s data, especially when the ultimate responsibility for protecting that data falls on you.

Your platform should feature robust cybersecurity measures, including encryption technology, two-factor authentications and multiple layers of firewalls, which can help prevent malicious actors from compromising sensitive data. Additionally, your platform provider should have round-the-clock threat hunting capabilities to identify and neutralize potential security threats in real-time.

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Regular security audits and assessments are equally important, as these evaluations help identify system vulnerabilities that enable your provider to proactively address potential security gaps before an attack takes place. Data backups are also fundamental for ensuring business continuity and data recovery in the event of a cyberattack or system failure.

Getting Third-Party Validation

When it comes to data security, there’s one more factor that often sets apart one mortgage technology provider from another – whether their operations and technologies have been validated by third parties for SOC 1 Type 2 and FISMA/NIST compliance.

SOC 1 Type 2 certification, also known as Service Organization Control 1 Type 2, is a widely recognized standard developed by the American Institute of Certified Public Accountants (AICPA). Technology providers with SOC 1 Type 2 certification are those that have demonstrated their internal controls over financial reporting—including the security, availability, processing integrity, and confidentiality of customer data—have been validated by a third party.

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Compliance with FISMA/NIST standards is important as well. The Federal Information Security Management Act is a U.S. federal law enacted to strengthen information security within federal government agencies. NIST, or the National Institute of Standards and Technology, is the entity responsible for publishing standards, guidelines, and best practices to help organizations implement FISMA requirements. If your technology provider is committed to FISMA/NIST compliance, their security controls meet federal government-level requirements for protecting sensitive information.

At MCC Mortgage Solutions, every one of these critical security measures is incorporated into our Mortgage Servicing Cloud platform and our operations.

Every year, we get a SOC 1 Type 2 audit performed on our operations to demonstrate our internal controls are designed to protect sensitive data. Additionally, our mortgage servicing platform is hosted on the Amazon Government Cloud, which is FISMA/NIST certified—plus we follow FISMA/NIST guidelines internally as well.

But we go even further. We also leverage solutions from CrowdStrike, a world leader in cybersecurity technology, including its Falcon Endpoint and Falcon Cloud Security, which cover security for networks and provide endpoint protection for workstations and devices.

Collectively, these efforts significantly decrease the chances of a data breach while providing our clients invaluable peace of mind. After all, truly effective mortgage servicing technology should be able to prioritize operational efficiency and safeguard sensitive borrower data.

To learn more about how our Mortgage Servicing Cloud platform can help you enhance data security as well as streamline your operations and help you achieve your business goals, contact us today at 248-350-9290 or email us at info@mccmortgagesolutions.com