Melissa Kozicki Mortgage Compliance Update

In this episode of Rick’s Room, host Rick Grant talks with Melissa Kozicki, Director of Compliance at Mortgage Cadence, about the rapidly shifting mortgage compliance landscape and what lenders need to know now.

Melissa explains that while there is significant churn—ranging from CFPB staffing changes and state-level activity to FHFA initiatives and speculation around Fannie Mae and Freddie Mac—the actual laws haven’t changed. For lenders, that means heightened awareness is necessary, but immediate operational shifts are not.

Key insights from the conversation include:

• Awareness vs. Action: Not every industry headline requires immediate change. Lenders should distinguish between monitoring discussions and responding to official guidance.
• Agency Uncertainty: Agencies like FHA, VA, and USDA are evolving at different paces, with some stepping up technology and others pulling back due to staffing or funding.
• Examinations: While regulators’ focus may shift, the underlying examination guides haven’t changed. Examiners will continue to look for measurable consumer harm and fraud, which could create more clarity for lenders.
• Preparing for the Future: Instead of reacting prematurely, lenders can use this time to evaluate internal processes, strengthen vendor due diligence, and learn more about emerging technologies like AI.
  

Melissa emphasizes that compliance must be operationalized—woven into every part of the loan process rather than existing in a silo. Mortgage Cadence supports this through active dialogue with clients, including open forums where compliance professionals can candidly share questions and solutions.

For lenders, the message is clear: don’t panic, stay informed, and use this moment to get stronger before regulatory changes arrive.

Show Highlights:

Rick Grant: Welcome to Rick’s Room. This is the show where we imagine the end of a busy conference day—when you finally get the chance to sit down with someone you’ve wanted to talk to all day. Today, my guest is Melissa Kozicki, Director of Compliance for Mortgage Cadence. Melissa, thanks for being here.

Melissa Kozicki: Thank you.

Rick: The compliance landscape in mortgage finance feels chaotic right now. Give us an overview.

Melissa: There’s definitely churn. We’ve seen the CFPB rescind interpretive guidance, make staffing changes, and shift examination focus. States are stepping in to fill that void with new legislation. Agencies like FHFA, Fannie Mae, and Freddie Mac are also shifting—sometimes announcing changes by social media post. Even agencies like VA, FHA, and USDA are uneven in their technology strategies, with some advancing and others pulling back.

That said, the laws themselves haven’t changed. Lenders don’t need to overhaul operations today. Awareness is key, but not every headline requires action.

Rick: So lenders should be watching, but not overreacting?

Melissa: Exactly. Take the new VantageScore, for example. It could open doors for more borrowers, but lenders don’t know pricing yet or how agencies will treat the MBS. Until official guidance is released, it’s not time to rewrite underwriting criteria. Awareness and call to action are two different paths.

Rick: What’s Mortgage Cadence doing behind the scenes during this time?

Melissa: We’re discussing impacts and dependencies. For example, technology changes don’t happen with the click of a button—we need specs from Fannie and Freddie, updates from credit vendors, and more before reprogramming systems. We’re preparing, but not over-engineering for something that may never materialize.

Rick: Where might lenders first feel these changes?

Melissa: Examinations. But keep in mind, exam guides from CFPB and FDIC haven’t changed. Agencies may shift focus—for example, CFPB examining more depositories while states pick up more IMB oversight—but the fundamentals are the same. Encouragingly, CFPB has said they’ll focus on measurable consumer harm and fraud, which could make exams more straightforward.

Rick: What should lenders be doing now?

Melissa: Think of this as the calm before the storm. With no sweeping mandates like Dodd-Frank looming, now is the time to make internal improvements: update processes, strengthen vendor due diligence, and deepen your understanding of technology and AI. Compliance officers especially should expand their knowledge of how tech impacts risk management.

Rick: How does your team at Mortgage Cadence support lenders in this process?

Melissa: Compliance can’t exist in a bubble. It has to be operationalized across the entire loan process. Our compliance and product teams work directly with clients in open, ongoing conversations. We even host informal “open mic” sessions where compliance peers can ask questions and share concerns without judgment. That collaboration helps us all find more efficient, effective solutions.

Rick: Melissa, this has been very reassuring. Thank you for making sense of all the churn. We’ll definitely need to have you back as things evolve.

Melissa: Sounds great. Thank you.