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Last week LoanLogics announced a new product in our HMDA compliance portfolio of solutions, LoanHD® HMDA DirectCheck™. It is an exciting new offer targeted at lenders who have reasonable confidence in their data from their loan origination system (LOS) or other trusted source and want a highly automated, efficient, less costly, and more accurate way of completing HMDA file reviews. Manual reviews never quite provide lenders or regulators the confidence they need for reporting.
As a leading provider of mortgage doc processing automation, LoanLogics has offered a HMDA solution that delivers purified data to file reviews since 2017. Recently rebranded to LoanLogics HMDA Complete™, this solution not only automates review tasks, but creates a 360-degree view of a lender’s loan file data by comparing the essential data from loan documents against loan origination (LOS) and other system data for the utmost accuracy in HMDA compliance reporting. LoanLogics is one of the only, if not the only, provider in the industry who offers this complete look at HMDA data before reviews.
Both offerings have their respective positions on the spectrum of solutions lenders need to assure accurate HMDA reporting. Whichever the data source, LoanLogics technology has a proprietary rules engine that automatically clears loans with no errors, often the vast majority, and presents the results in our SaaS-based LoanHD Loan Quality platform. A highly automated, single-page HMDA worksheet streamlines auditor workflow, using color-coded indicators to identify loans requiring a more detailed manual review. Data requiring edits can be updated right in the system.
The LoanHD HMDA worksheet also includes integrated tools to calculate rate spread and update geocode information, as well as discrepancy reporting so lenders can update LOS data for data integrity in future reporting. Its loan application register (LAR) generation capabilities have recently been enhanced with the addition of over 100 rules to automate the validation and transformation of HMDA data in compliance with Consumer Financial Protection Bureau (CFPB) requirements. Finally, a comprehensive audit trail provides evidence that a thorough, repeatable process is taking place to satisfy regulator review.
A unique benefit of working with a provider like LoanLogics, that offers two unique HMDA solutions, is lenders can leverage both tools in their compliance efforts. Those working with HMDA Direct Check can use HMDA Complete as a quality check on a subset of their loans, incorporating a detailed review of all documents compared to system data in their reviews. Standard and custom reporting in LoanHD makes it easy to drill down on recurring defects and trends occurring in the origination process.
If your 2020 HMDA reporting was less automated than you would have liked it to be and want a better option to maintain compliance this year, give us a shout. We’d love to show you a quick demo and talk with you more about the benefits of these two solutions.
