Mortgage

Enhance Security, Build Trust: How IT Audits Defend Your Mortgage Company 

In a landscape of shifting business models, regulatory complexities, and swift technological progress, conducting internal audits is crucial for maintaining an efficient and compliant organization. One often overlooked, yet essential, aspect of conducting an internal audit is understanding and implementing IT audits to strengthen internal controls over your IT infrastructure. While many mortgage leaders are familiar with the requirement to perform an internal audit, the benefits and requirements of IT audits are lesser known.  

What is an IT Audit?  

An IT audit is an evaluation of your organization’s information system security controls, change management, IT operations, and related processes and should help an organization understand and manage risks in its IT environment. Within the broader framework of internal audits, an IT audit focuses specifically on the technological aspects, so lenders can understand their tech stack, the underlying controls, and how susceptible they are to fraud based on their system configuration to enhance their controls for efficiency and protect digital assets. When an internal audit is performed, IT processes and procedures are one of the areas that should be evaluated. An IT audit is not the same as your cybersecurity program but should work in tandem with it.  

Who Needs an IT Audit?  

An IT audit is like a background check over your key applications and is beneficial to all lenders to ensure your company runs smoothly, manages risk effectively, and safeguards data to build trust with your customers and stakeholders. The IT function impacts all parts of your business, so understanding the various areas of impact is essential for compliance across your firm. 

Additionally, having independent assessments to identify blind spots and potential vulnerabilities will help you optimize and enhance your operational effectiveness. Everyone needs an internal audit to protect themselves and grow their business with a healthy risk appetite. Without risk, you can’t grow, but understanding where your risks are will enable you to protect yourself while growing. 

All Fannie Mae approved lenders and applicants are required to have internal audits. An IT audit should be a component of your internal audit function. 

What Does an IT Audit Process Look Like?  

An effective IT audit should be a component of your internal audit function, rather than a stand-alone exercise. As a part of the broader internal audit, you should evaluate your daily operations, risk factors in each department, and quality control functions to protect all parts of your business.  

A good IT audit requires a customized approach, tailored to your organization’s unique characteristics and perspectives, covering everything from your IT documentation to your company’s culture. In a mortgage operation, your culture often dictates how you provide your service. The IT audit should consider those factors in the assessment of perceived risks and make recommendations on how to safeguard against them. 

Many industry vendors deploy a standard program that lenders either pass or fail. This broad, generalized approach leaves no room to account for the cultural or departmental interactions of its employees. Without that critical context or collaboration, there is no clear and accurate way to delineate the motives, controls, and conditions that contribute to the IT environment at large. The best internal audits promote collaboration and foster a culture of regular feedback and communication. In this way, the detailed recommendations that stem from the IT audit can also serve as a risk-forward strategy for your business.  

An IT audit is more than just a regulatory checkbox; it’s a strategic tool that enhances data security, operational efficiency, and stakeholder trust. By understanding and implementing regular IT audits coupled with a cybersecurity program, lenders can safeguard their organization against risks and position themselves for sustained success. 

Richey May’s IT Audit process is designed to help mortgage leaders understand their risks and mitigate them, while allowing your business to operate more effectively. Our team is specialized in the mortgage industry, meaning we speak your language and understand your needs. Contact us to get started today!