LoanLogics has enhanced its LoanHD Loan Quality Management platform with an Audit Response Center (ARC). The new ARC enables mortgage lenders to efficiently address defects and conditions on loans immediately after each loan has been reviewed. Importantly, it also provides lenders with a compliance trail showing how each defect was addressed, so regulators and investors are able to clearly see what actions were taken.
The ARC allows the lender to auto-assign a respondent, or the person in the lender’s organization who will submit rebuttals and clear loan defects, such as a missing document or an incorrect fee. The system configuration also identifies “responsible parties,” or the people most responsible for the defect in the origination process.
The ARC includes a communication module that immediately notifies the respondent and the responsible party of defects discovered after a loan quality review. These notifications will also display responses from the auditor regarding the curing of conditions. The respondent will be prompted to log into the ARC portal to address all issues. Once resolved, the application automatically updates the LoanHD platform.
This capability enables lenders to have complete visibility into the process, while making sure defects are addressed in a timely manner. Further, lenders can create action plans in LoanHD based on the frequency and sources of defects. These plans can then be easily monitored and tracked to reduce future origination defects.
“With this enhancement to LoanHD, relevant parties in the loan process will find out quickly if there are any defects or conditions in a loan that need to be addressed,” said Dave O’Malley, director of loan quality solutions with LoanLogics. “In addition, lenders will be able to track the progress of defect resolution and make sure the appropriate person in their organization responds to the issue or issues expeditiously.”
“At the same time, there is a compliance trail that shows how each defect was addressed,” O’Malley said. “Regulators and investors not only require lenders to find and resolve issues with loans, but they also would like them to show proof of what they did. This enhancement provides that level of detail so lenders are covered.”