Innovation in regulatory compliance | Provana LLC acquires CARMA, Inc.
March 09, 2020 | by Provana, tagged in Acquisition, Press Releases, Carma
Provana acquires CARMA, Inc. to expand its range of audit and compliance management solutions. This strategic acquisition further reinforces Provana's vision of building robust, intelligent solutions that help drive profitability and growth through technology for regulated businesses and networked enterprises.
Provana, a leading provider of best-in-class solutions for compliance management, is excited to announce its acquisition of CARMA, Inc. CARMA is an RMA-Approved Third-Party Independent Auditing Firm that specializes in audit and compliance engagements.
Provana, headquartered in Chicago, IL, has a global presence of over 1,400 employees and invests heavily in building intelligent solutions designed to improve compliance and efficiency while reducing costs for regulated businesses and networked enterprises.
This strategic acquisition gives Provana access to the team of seasoned and highly-trained audit and compliance professionals, as well as the assets and services offered by CARMA. This will supplement Provana’s already powerful suite of compliance products and services while driving further innovation. The acquisition will also help Provana cement its position across new verticals like auto finance, as well as associations, in the receivables management industry -- where CARMA has a strong foundation and enjoys high recognition.
“Provana opens up a lot of exciting avenues for CARMA, and allows us to combine our extensive knowledge with their deep expertise in building innovative technology solutions to stay at the forefront of a rapidly-evolving regulatory landscape,” says Michelle Shaffer, the CEO of CARMA. Michelle, a CPA, and formerly the head of Internal Audit for Encore Capital Group, comes with over 20 years of expertise in regulatory compliance and the consumer financial services industry. She joins Provana as Vice President and will lead the Compliance - Products & Services business vertical.
“We are very excited about the possibilities this acquisition will bring. We have always admired CARMA’s breadth of knowledge and experience in audit and business, and look forward to integrating it with Provana’s existing compliance products to offer a superior, best-in-class solution to clients,” adds Karen Powell, Co-founder and COO at Provana LLC.
This acquisition comes amidst a series of investments made by Provana in technology-driven companies that provide solutions to regulated industries such as receivables management. This further bolsters Provana’s resolve to rapid expansion and growth in 2020, both vertically and horizontally, to establish itself as the go-to partner for organizations looking to increase profitability and drive down costs using technology and outsourcing.
About Provana
Founded in 2011 and headquartered in Chicago, IL, Provana offers businesses and networked enterprises access to a global delivery model and cutting-edge tech-enabled solutions -- including compliance management, business intelligence, consumer contact solutions, and process outsourcing & automation.
The combination of technology expertise and a large global workforce with high breadth and depth of experience makes Provana the perfect partner to help organizations increase profitability, improve performance and exceed client expectations.
About CARMA
CARMA is a provider of RMA-approved compliance audits and is headquartered in Las Vegas, Nevada. CARMA develops and implements policies, programs, and procedures for CFPB-regulated entities with a focus on receivables management and auto finance, to help clients solve complex audit, compliance, and finance problems using customized and client-driven solutions.
March 09, 2020 | by Provana, tagged in Acquisition, Press Releases, Carma
Provana acquires CARMA, Inc. to expand its range of audit and compliance management solutions. This strategic acquisition further reinforces Provana's vision of building robust, intelligent solutions that help drive profitability and growth through technology for regulated businesses and networked enterprises.
Provana, a leading provider of best-in-class solutions for compliance management, is excited to announce its acquisition of CARMA, Inc. CARMA is an RMA-Approved Third-Party Independent Auditing Firm that specializes in audit and compliance engagements.
Provana, headquartered in Chicago, IL, has a global presence of over 1,400 employees and invests heavily in building intelligent solutions designed to improve compliance and efficiency while reducing costs for regulated businesses and networked enterprises.
This strategic acquisition gives Provana access to the team of seasoned and highly-trained audit and compliance professionals, as well as the assets and services offered by CARMA. This will supplement Provana’s already powerful suite of compliance products and services while driving further innovation. The acquisition will also help Provana cement its position across new verticals like auto finance, as well as associations, in the receivables management industry -- where CARMA has a strong foundation and enjoys high recognition.
“Provana opens up a lot of exciting avenues for CARMA, and allows us to combine our extensive knowledge with their deep expertise in building innovative technology solutions to stay at the forefront of a rapidly-evolving regulatory landscape,” says Michelle Shaffer, the CEO of CARMA. Michelle, a CPA, and formerly the head of Internal Audit for Encore Capital Group, comes with over 20 years of expertise in regulatory compliance and the consumer financial services industry. She joins Provana as Vice President and will lead the Compliance - Products & Services business vertical.
“We are very excited about the possibilities this acquisition will bring. We have always admired CARMA’s breadth of knowledge and experience in audit and business, and look forward to integrating it with Provana’s existing compliance products to offer a superior, best-in-class solution to clients,” adds Karen Powell, Co-founder and COO at Provana LLC.
This acquisition comes amidst a series of investments made by Provana in technology-driven companies that provide solutions to regulated industries such as receivables management. This further bolsters Provana’s resolve to rapid expansion and growth in 2020, both vertically and horizontally, to establish itself as the go-to partner for organizations looking to increase profitability and drive down costs using technology and outsourcing.
About Provana
Founded in 2011 and headquartered in Chicago, IL, Provana offers businesses and networked enterprises access to a global delivery model and cutting-edge tech-enabled solutions -- including compliance management, business intelligence, consumer contact solutions, and process outsourcing & automation.
The combination of technology expertise and a large global workforce with high breadth and depth of experience makes Provana the perfect partner to help organizations increase profitability, improve performance and exceed client expectations.
About CARMA
CARMA is a provider of RMA-approved compliance audits and is headquartered in Las Vegas, Nevada. CARMA develops and implements policies, programs, and procedures for CFPB-regulated entities with a focus on receivables management and auto finance, to help clients solve complex audit, compliance, and finance problems using customized and client-driven solutions.
CFPB Mortgage Rules Still Dominate Lenders' Compliance Concerns
May 21st, 2014 | by Jason Oliva Published in CFPB, News, Reverse Mortgage
Mandates and deadlines from the Consumer Financial Protection Bureau (CFPB) continue to be mortgage lenders’ top concerns for the third year in a row, according to QuestSoft’s eighth annual compliance survey.
CFPB’s Qualified Mortgage rule commanded the greatest share of lenders’ compliance qualms, with 62.2% of the more than 500 lenders surveyed saying this is a high concern.
Other Bureau rulings, including Ability-to-Repay violations and the combined Truth in Lending and Good Faith Estimate disclosure forms also ranked as high concerns, with 57.2% and 54.8% of lenders.
CFPB-related rule making has captured the top spot in the survey every year since 2012, which was also the first survey year available following the creation of the regulatory body.
Compared to last year’s survey, lenders appear more weary than ever of the CFPB’s rules, as non-CFPB issues are seen as increasingly lower priorities, stated Leonard Ryan, founder and president of QuestSoft.
Discussion points for proposed Home Mortgage Disclosure Act changes (57.5% high concern) and other CFPB-related rules (47.7% high concern) both outscored any non-CFPB category in the QuestSoft survey.
“It seems the message of the survey is that for many lenders, the mortgage environment has become highly dependent on the box of lending that the CFPB rules are creating,” Ryan stated.
The survey also indicated lenders have a growing concern regarding vendor management, with QuestSoft experiencing a four-fold increase in the cost of processing compliance requests.
“The timeframe in between regulatory rule announcements and implementation dates simply doesn’t allow enough leeway for lenders to rework processes and implement new technologies in order to achieve compliance,” said Ryan. “Lenders will continue to seek counsel and integrate with venerable compliance providers, in efforts to prepare for audits and meet industry compliance standards.”
The Laguna Hill, California-based QuestSoft provides automated compliance software and services to the mortgage, banking and credit union industries.
The company’s customer satisfaction survey has been conducted using the same methodology after each year’s Home Mortgage Disclosure Act reporting deadline since 2007. This year’s survey was based on lender responses collected between March 4-13.
May 21st, 2014 | by Jason Oliva Published in CFPB, News, Reverse Mortgage
Mandates and deadlines from the Consumer Financial Protection Bureau (CFPB) continue to be mortgage lenders’ top concerns for the third year in a row, according to QuestSoft’s eighth annual compliance survey.
CFPB’s Qualified Mortgage rule commanded the greatest share of lenders’ compliance qualms, with 62.2% of the more than 500 lenders surveyed saying this is a high concern.
Other Bureau rulings, including Ability-to-Repay violations and the combined Truth in Lending and Good Faith Estimate disclosure forms also ranked as high concerns, with 57.2% and 54.8% of lenders.
CFPB-related rule making has captured the top spot in the survey every year since 2012, which was also the first survey year available following the creation of the regulatory body.
Compared to last year’s survey, lenders appear more weary than ever of the CFPB’s rules, as non-CFPB issues are seen as increasingly lower priorities, stated Leonard Ryan, founder and president of QuestSoft.
Discussion points for proposed Home Mortgage Disclosure Act changes (57.5% high concern) and other CFPB-related rules (47.7% high concern) both outscored any non-CFPB category in the QuestSoft survey.
“It seems the message of the survey is that for many lenders, the mortgage environment has become highly dependent on the box of lending that the CFPB rules are creating,” Ryan stated.
The survey also indicated lenders have a growing concern regarding vendor management, with QuestSoft experiencing a four-fold increase in the cost of processing compliance requests.
“The timeframe in between regulatory rule announcements and implementation dates simply doesn’t allow enough leeway for lenders to rework processes and implement new technologies in order to achieve compliance,” said Ryan. “Lenders will continue to seek counsel and integrate with venerable compliance providers, in efforts to prepare for audits and meet industry compliance standards.”
The Laguna Hill, California-based QuestSoft provides automated compliance software and services to the mortgage, banking and credit union industries.
The company’s customer satisfaction survey has been conducted using the same methodology after each year’s Home Mortgage Disclosure Act reporting deadline since 2007. This year’s survey was based on lender responses collected between March 4-13.
CFPB Slams Ally Auto Lender with $98 Million Enforcement Action
December 22nd, 2013 | by Elizabeth Ecker Published in CFPB, News, Reverse Mortgage
The Consumer Financial Protection Bureau announced Friday its first-ever enforcement action for discriminatory lending practices in its action against indirect auto lender Ally.
The Bureau, in partnership with the Department of Justice, is ordering Ally to pay $98 million to address the company’s auto loan pricing structure, which the agencies allege has caused discrimination against more than 235,000 minority borrowers through “dealer markups,” or indirect lending channels.
“Too many consumers have had to pay more for their auto loans simply because of their race or other characteristics protected under the law,” said CFPB Director Richard Cordray in announcing the action. “Too often, these consumers do not know they are paying more or are simply unable to get recourse. Today’s action signals new attention to this serious problem.”
The action marks the first fair-lending action taken by the Bureau since its launch.
Under the order, Ally is required to pay $98 million toward resolution with the impacted borrowers and establish a new compliance framework. The company has also agreed to confer regularly with the CFPB in working to comply with fair lending law.
“We are committed to fair and equal access to credit for all consumers,” Cordray said. “In fact, it is one of our statutory responsibilities as a financial regulatory agency. Whether or not Ally consciously intended to discriminate makes no practical difference. In fact, we do not allege that Ally did so. Yet the outcome, and the harm to consumers, is the very same here.”
December 22nd, 2013 | by Elizabeth Ecker Published in CFPB, News, Reverse Mortgage
The Consumer Financial Protection Bureau announced Friday its first-ever enforcement action for discriminatory lending practices in its action against indirect auto lender Ally.
The Bureau, in partnership with the Department of Justice, is ordering Ally to pay $98 million to address the company’s auto loan pricing structure, which the agencies allege has caused discrimination against more than 235,000 minority borrowers through “dealer markups,” or indirect lending channels.
“Too many consumers have had to pay more for their auto loans simply because of their race or other characteristics protected under the law,” said CFPB Director Richard Cordray in announcing the action. “Too often, these consumers do not know they are paying more or are simply unable to get recourse. Today’s action signals new attention to this serious problem.”
The action marks the first fair-lending action taken by the Bureau since its launch.
Under the order, Ally is required to pay $98 million toward resolution with the impacted borrowers and establish a new compliance framework. The company has also agreed to confer regularly with the CFPB in working to comply with fair lending law.
“We are committed to fair and equal access to credit for all consumers,” Cordray said. “In fact, it is one of our statutory responsibilities as a financial regulatory agency. Whether or not Ally consciously intended to discriminate makes no practical difference. In fact, we do not allege that Ally did so. Yet the outcome, and the harm to consumers, is the very same here.”
The Ever Present Need for Effective and Proactive Vendor Oversight-FDIC Advisory
PUBLISHED ON OCTOBER 16, 2013 BY BRAD KELLER | POSTED IN: VENDOR OVERSIGHT
The FDIC Advisory Committee on Community Banking meeting in July 2013 included an extensive discussion of the responsibility of banks in ensuring their vendors consistently meet privacy and other information security regulations and requirements.1 One of the greatest takeaways from these committee sessions is that while regulators examine financial services vendors that contract for core bank services or other third party services that are covered under the Bank Service Company Act, they are not allowed to make direct report of findings to the banks that contract with these vendors.2 The Committee advised that bank’s need to do more due diligence to determine that their vendors are capable of meeting their compliance obligations adding additional auditing of their third party relationships.
The serious need for more effective due diligence is evidenced by the 2011 case of a hacker break in at Fidelity National Information Services (FIS). FIS reportedly found no red flags through its due diligence, but ultimately had a significant data breach. The recent (June 2013) disclosure that this breach was far more extensive than FIS had previously revealed “highlights a shocking lack of basic security protections throughout one of the nation’s largest financial services providers.”3 Given that FIS provides a range of services to more than 14,000 financial institutions in over 100 countries, the impact of this breach is quite significant.According to the Advisory Committee on Community Banking, financial institutions can be more effective and proactive ensuring vendors identify and address security gaps by becoming more thorough in their monitoring procedures by:
PUBLISHED ON OCTOBER 16, 2013 BY BRAD KELLER | POSTED IN: VENDOR OVERSIGHT
The FDIC Advisory Committee on Community Banking meeting in July 2013 included an extensive discussion of the responsibility of banks in ensuring their vendors consistently meet privacy and other information security regulations and requirements.1 One of the greatest takeaways from these committee sessions is that while regulators examine financial services vendors that contract for core bank services or other third party services that are covered under the Bank Service Company Act, they are not allowed to make direct report of findings to the banks that contract with these vendors.2 The Committee advised that bank’s need to do more due diligence to determine that their vendors are capable of meeting their compliance obligations adding additional auditing of their third party relationships.
The serious need for more effective due diligence is evidenced by the 2011 case of a hacker break in at Fidelity National Information Services (FIS). FIS reportedly found no red flags through its due diligence, but ultimately had a significant data breach. The recent (June 2013) disclosure that this breach was far more extensive than FIS had previously revealed “highlights a shocking lack of basic security protections throughout one of the nation’s largest financial services providers.”3 Given that FIS provides a range of services to more than 14,000 financial institutions in over 100 countries, the impact of this breach is quite significant.According to the Advisory Committee on Community Banking, financial institutions can be more effective and proactive ensuring vendors identify and address security gaps by becoming more thorough in their monitoring procedures by:
- 1. Requesting reports from their vendors on all audits and examinations on an ongoing basis
- 2. Carefully and regularly reviewing reports.
- 3. Ensuring that contract language covers all regulations and requirements that vendors must meet to allow institutions to remain in compliance at all times.
- Establishing a company-wide culture of dedicated, forward thinking due diligence.
- Establishing a contracting process that includes automated audit request and reporting review.
- Training all employees on security and privacy issues and processes.
- Reinforcing training with ongoing awareness emails and other postings.