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Business is still booming. The June 18th MBA Mortgage Finance Forecast reported in Q1 2021 refinance and purchase volumes outpaced 2020 and Q2 would see similar upticks, with purchase activity holding strong through years end. All good stuff, particularly for an industry that already experienced such unexpected good fortune in the midst of a global pandemic.
With all this focus on production and pumping through all the volume it is important lenders don’t take their eyes off compliance responsibilities. In a May MBA Newslink article, Dave Parker, LoanLogics’ Chief Product Officer, talked about how a change in presidential administration brings a new focus to regulatory oversight. Removing some of the HMDA reporting flexibilities initiated at the start of the pandemic was one of the CFPB’s first flexes under Democratic leadership.
Now there are new reports showing the watchdog organization is cracking down on lenders violating the Truth in Lending Act and the Equal Credit Opportunity Act, even surfacing that “’widespread errors’ in lenders’ data disclosures” have been identified in their HMDA reporting. Servicers were also recently flagged in this recent sweep for disclosure issues associated with foreclosures.
This gives lenders even more reason to ensure compliance controls don’t fall to wayside when the revenue producing sides of the business are requiring such an increase in the business’s operational attention.
LoanLogics can help. We offer automated technology solutions for both TRID and HMDA, as well as a consultative annual review service for MERS® compliance that can help ease the burden, as well as increase confidence in accurate, timely reporting.
Working with LoanHD® for HMDA compliance, lenders can complete file reviews in just a few minutes. Using a trusted data source or verified validated data, the system’s proprietary rules engine culls through thousands of data points and clears a majority of loans before the audit even begins. Automaton goes on to systematically flag discrepancies, errors or missing information. From there, color-coded indicators guide auditors to the loans requiring a detailed, quick review.
TRID compliance is also a breeze when working with LoanHD. The system has a tight knit integration with ComplianceAnalyzer from ComplianceEase. By integrating these systems together, lenders no longer have to toggle between multiple systems to complete a full compliance review. Through a single user interface, data, documents and any discrepancies found during automated processing are pre-populated in a compliance audit worksheet. From there disclosures can be compared and fee inconsistencies evaluated. Any conditions identified can then be cleared before submission to a compliance engine for the complete the analysis.
And, working with LoanLogics for annual MERS reviews will help you tighten controls. Rather than just checking a box for compliance, we invest the time to thoroughly evaluate your processes, documents, and procedures to ensure there are no failure points.
With all this automation and consultative MERS support, it’s easy to get through the compliance reviews with less hassle. Don’t let regulatory obligations sneak up on you while you’re focusing your attention getting applications in the door and processed. Learn more about our solutions to help with mortgage compliance request a product introduction on our website.
