As the industry becomes more regulated and lenders look to be both compliant and get as much profit out of every loan as possible, technology can surely help out a lot. For example, Ellie Maehas expanded the scope of its Total Quality Loan (TQL) program to provide mortgage banks, depository banks and credit unions of all sizes a best practices workflow to promote a high level of compliance, loan quality and efficiency. Here’s how it works:
TQL has also been expanded to help lenders comply with new Ability-to-Repay (ATR) and Qualified Mortgages (QM) requirements. New features enable mortgage lenders to demonstrate the controls that have been put in place to track quality and the steps they have taken to promote compliance, including:
>> A central repository for all data, proof of verification and documentation.
>> Additional quality validations for compliance, income verification and documentation.
>> The ability to export proof of ATR/QM to investors and for audit purposes.
>> Greater transparency into the quality of each loan and an ability to understand where the higher risks in your pipeline exist.
>> Dashboards and reports that provide insight to monitor quality at the organizational and individual contributor levels and speak to the lender’s process control and vendor management oversight.
As a part of Ellie Mae’s Encompass mortgage management solution, TQL provides secure, single sign-on and seamless ordering of compliance and verification services. Specifically, TQL makes the following services available on one easy-to-use screen to promote a consistent best practices workflow and reduce errors:
>> Encompass Compliance Service provides automated compliance checks early and often to uncover defects and compliance concerns throughout the origination process.
>> Encompass 4506-T Service provides electronic ordering and income verification of IRS tax return data.
>> Encompass Fraud Service assesses and evaluates early payment default, loss-severity risk, fraud detection scoring and data alerts.
>> Encompass Flood Service validates a property’s flood zone and helps speed the loan process with electronic order and secure transfer of flood risk products.
TQL enables lenders to confirm quality in their loan origination processes by:
>> Auto-reviewing against industry and investor-defined standards.
>> Transforming the loan review process into an “exception-based” process.
>> Providing a digital vault for all verifications and documentations to capture the steps taken to promote quality and compliance.
“Ellie Mae’s TQL program has helped us drive time, cost and redundancy out of the loan origination and sales process,” said AJ Franchi, chief information officer at Gold Star Mortgage Financial Group. “We have been able to reduce post-closing errors by more than 20%, cut loan processing time from 45 to 25 days and move loans off our warehouse line 10 days faster.”
“We believe TQL is delivering on its promise of improving loan quality, compliance and efficiency––all of which create safer, more profitable loans for lenders and investors,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “The new information, verification and documentation capabilities for ATR/QM and an investor-agnostic workflow make TQL even more valuable and accessible to a larger universe of Ellie Mae lender and investor clients.”
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