Understanding The News: Perfecting Loan Validation Processes

*Perfecting Loan Validation Processes*
**Validating MERS Electronically**

***Aklero Risk Analytics Inc., a provider of mortgage quality control software and services via their automated data and document validity assurance platform, has unveiled DQx for MERS Data and Document Validation Module. The module is part of Q-Close, their Loan Quality Management Platform, and provides an automated method to validate the accuracy of data resident in the MERS Electronic Registry. Here’s what you need to know:

****“We developed this offering in response to the requirements outlined in the MERS Quality Assurance Procedures issued in September requiring servicers to validate the accuracy of the data held on the MERS’ system against source documents,” said Richard J. Downing, Executive Vice President of Sales for Aklero.

****As a result, lenders are required to attest that they have performed a three-way document to data validation, including comparing the data on the MERS system against the bank’s data and against the “true data,” or original documents, a process that ensures a high degree of accuracy.

****“Aklero is the only firm in the mortgage industry that has automated the process of comparing the data that populates original documents to the records the servicers and MERS maintain,” said Julia Hernandez, Senior Vice President of Professional Services for Aklero. “People make mistakes, but, by relying on the original documents, especially those from the closing, our solution provides a more accurate and comprehensive audit.”

****That approach enables Aklero to review the documents and identify discrepancies. For servicers, the benefit of using this module is that Aklero can validate thousands of loans overnight, while in the same amount of time, servicers that cling to expensive manual processes complete far fewer loans files.

****Based in Fort Washington, Penn., Aklero provides mortgage quality control and risk analytics solutions for the mortgage lending industry. Its proprietary Q-Close Loan Quality and Mortgage Risk Analytics Platform provides loan audits and automated deficiency detection, allowing users to quickly and efficiently find, fix and understand problems in mortgage loan files. Augmenting its technology platform the company also provides forensic analysts, mortgage quality control audits, due diligence loan reviews and a variety of operational solutions and customizable products and services that can be tailored to suit clients’ needs. Aklero’s customers include mortgage lenders, institutional investors, investment banks, government agencies, community banks, credit unions, mortgage insurance companies and other financial institutions. After an in-depth evaluation that pitted the firm against its competitors, the American Banker Association, named Aklero its exclusive provider of mortgage quality control services.

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