Compliance Officers: The Best Hire You Don’t Make

Raymond Snytsheuvel
Nov 18
3 min read

Compliance isn’t getting any easier. The rules keep piling up, the regulators keep watching, and the “oops” moments keep getting more expensive.

But let’s be honest: hiring a full-time Chief Compliance Officer (CCO) doesn’t always pencil out—especially if you’re still growing, or your compliance needs shift from month to month.

That’s where a fractional compliance officer comes in. Think of it as senior-level guidance—without the full-time price tag. Let’s break down what that means and how it works.

Compliance officer name plaque and binders

What Is a Fractional Compliance Officer?

A fractional compliance officer is a part-time compliance professional who acts like an embedded member of your team—but without the overhead.

Whether it’s reviewing policies, prepping for exams, or guiding meetings, their role is to reduce risk and free up your internal team.

You get expert help where you need it and when you need it—weekly, monthly, or just for high-stakes reviews.

Why Go Fractional?

Here’s what makes the fractional model work for lenders:

Cost Savings

You don’t need to fund a full-time position to stay compliant. You pay for the help you actually use.

Deep Experience

Fractional compliance officers often bring decades of experience in mortgage compliance. They’ve seen it all, fixed most of it, and probably warned someone about it.

Scalable Support

Launching a new product? Preparing for an exam? Just need someone to review your policies quarterly? Fractional compliance officers adjust as your needs shift.

Built-in Perspective

Fractional officers work with multiple lenders. That means they bring insights—not just from your shop, but from across the industry.

More Focus, Less Firefighting

Let your internal team stay focused on funding loans and running operations. They’ll handle the regs.

Tailored to Your Ops

No boilerplate here. Fractional officers align their strategy with your systems, risk profile, and goals.

Trusted by Regulators

Fractional officers often have strong working relationships with state and federal regulators, which can make audits and exams go a whole lot smoother.

What FCOs Actually Do

Here’s what a fractional compliance officer from Loan Risk Advisors might handle for you:

Compliance meeting support: Joins key meetings to offer guidance on agenda-specific compliance issues and help your team stay aligned.
Risk assessment and strategy: Identifies and prioritizes potential risks early—so you can fix issues before they grow and align compliance with business goals.
Policy and procedure development: Creates custom policies and desktop procedures tailored to how your company actually works—not just boilerplate rules.
Exam and audit representation: Acts as your compliance lead during audits and state exams, including preparing and submitting responses.
Reporting oversight: Manages required reporting, including MCRs and HMDA submissions, so your data is accurate and deadlines aren’t missed.
and deadlines
CMS leadership and support: Oversees your entire Compliance Management System—or steps in where your team needs backup or structure..
missed.

Not every client needs the same thing. That’s why we customize our role based on where you need backup most.

What Kinds of Lenders Use This Model?

Here are the types of lenders who benefit most from fractional support:

Growing lenders who don’t have the budget (or volume) for a full-time compliance team.

Mortgage bankers prepping for a state exam.

Shops in transition—new licensing, staffing gaps, or mergers.

Executives who want peace of mind without adding headcount.

How to Get the Most Out of a Fractional Compliance Officer

Want fractional help that actually helps? Start here:

Set expectations early. Define what you need, how often you need it, and what success looks like.
Share the playbook. Give access to your policies, LOS, vendors—anything we need to jump in quickly.
Stay in the loop. Add your fractional officer to key meetings or threads. We work best when we’re in the room (or Zoom).
Ask for recommendations. We’ll bring what we’ve seen work elsewhere and tailor it to your ops.
Keep a steady rhythm. Ongoing compliance isn’t just fire drills. Regular touchpoints = fewer surprises.

Compliance Isn’t Optional. But It Can Be a Competitive Edge

Most lenders think of compliance as something you have to do. But done right, it becomes a way to build trust—with regulators, with investors, and with the people funding loans every day.

A solid compliance program doesn’t just keep you out of trouble. It makes your business stronger, steadier, and more resilient. It shows partners that you know what you’re doing—and that you’re in it for the long haul.