3.1.1 Why C-PEM®-B Matters

Equity holders need to know that if the mortgage brokerage trades in private equity mortgages (which have the real possibility of putting the brokerage at-risk); there are mechanisms in place to ensure the transactions are compliant with generally accepted private equity mortgage transaction principles and the employees that market and sell private equity mortgage solutions are both competent and work in accordance to all applicable regulatory requirements.

Anything less places the mortgage brokerage operations at-risk for legal accountability caused by failed business processes that are not customized to the needs of private equity mortgage transactions or incompetent management or employees. 

C-PEM®-B validates that the mortgage business has structural mechanisms, processes and communication systems in place which controls the private equity mortgage transaction in a quality focused environment.

Effective corporate governance means that the business systems (decision-making, operations, quality-control) of the mortgage brokerage are structured in a manner that fulfills the trade requirements of private equity mortgages. Effective corporate stewardship means that the management team is trained and competent in using the corporate governance tools to effect shareholder value and profitability.

When a mortgage broker firm has earned its C-PEM®-B, stakeholders may rely upon the knowledge that the company operates in a manner that will reduce customer service complaints and virtually eliminate errors and omissions claims pertaining to matters of failed private equity mortgage business processes.