Three technology firms have beefed up the compliance features of their loan origination systems. Meanwhile, servicers also saw compliance improvements to loss mitigation offerings.
But first, the Federal Reserve Board recently proposed changes to Regulation Z for public comment. The revisions implement the Mortgage Disclosure Improvement Act — an amendment to the Truth-in-Lending Act — which seeks to ensure that prospective borrowers receive cost disclosures earlier in the mortgage process.
The new act broadens the requirement for good faith estimates to loans on properties that are not the borrower’s primary residence. It also requires seven days between early disclosures and the loan closing and puts three days between any changes in loan terms and the closing.
Servicers can access information on statutes and case law about lending and foreclosures through a new portal from National Loan Auditors, a press release Friday said. The portal also provides status updates on all federal, state and municipal compliance legislation. In addition, it covers alternatives to workout agreements, Truth-in-Lending Act summary and the Home Owners Equity Protection Act action steps.
“The portal adds value to our forensic loan audit by providing support for its findings and information on how to effectively use the audit report in legal proceedings,” National Loan Auditors Chief Executive Officer August Blass said in the statement.
Servicers who use Mortgage Contracting Services to maintain REOs will have access to a new compliance section on its Web site, according to a statement last week. The page enables opt-in registration for e-mail compliance updates and features vacant property registration ordinances and regulatory advisories. It also includes disaster tracking and guidelines for the Department of Housing and Urban Development, the Department of Veteran Affairs, Fannie Mae and Freddie Mac.
The National Association of Mortgage Brokers has endorsed AllRegs as its exclusive training provider, AllRegs announced last week. Among available courses are those that focus on compliance topics such as Fair Lending, state regulations, TILA and the Real Estate Settlement Procedures Act. In addition, AllRegs is developing additional curriculum designed to meet S.A.F.E. Act requirements.
Lenders that fail to prevent compliance errors can insure against some claims with errors and omissions policies being marketed by Mortgage Insurance Agency Ltd. The firm says it is an NAMB strategic partner.
Financial Industry Computer Systems Inc. reported earlier this month that its Loan Producer LOS has received MXCompliance certifications from the Mortgage Industry Standards Maintenance Organization Inc. for a number of its interfaces.
Interlinq E3 has been completely integrated with Compliance EAGLE, Harland Financial Solutions said in a press release last week. The integration incorporates automated loan compliance with a LOS through a single offering.
A similar alliance was announced last week between Wolters Kluwer Financial Services and MortgageDashboard. That move will incorporate compliant loan documents and disclosures into the MortgageDashboard LOS and will enable digital delivery to borrowers for digital signatures.
Wolters also recently announced an alliance with the Independent Community Bankers of America to provide the trade group’s members with access to its compliance services. Wolters noted that many community banks are well positioned to expand as competition has dwindled and demand has increased.
