CoreLogic Integrates 4506-T Direct With INTEGRA’s LOS Platforms

CoreLogic has announced that their 4506-T Direct Income Verification Solution is now available on INTEGRA Software Systems’ legacy Destiny Loan Origination System (LOS) and INTEGRA’s web-based EPIC LOS. When combined with the previously existing CoreLogic integrations of the Instant Merge credit report, Flood Determination services, LoanSafe Risk Manager fraud solution and the Mercury Network valuation technology platform, this new integration provides INTEGRA users with a more complete solution offering from a single provider.

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The IRS 4506-T form is used by lenders to retrieve tax return information to verify a potential borrower’s income. Featuring one of the most rigorous quality control processes in the industry, the CoreLogic 4506-T Direct service minimizes submission errors and decreases verification turnaround times with the IRS, helping reduce customer costs associated with income verification. CoreLogic can accept both wet and electronically signed 4506-T forms.

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“The inclusion of 4506-T Direct on INTEGRA’s Destiny and EPIC Loan Origination Systems continues our mission of providing mortgage professionals with the most comprehensive suite of products on the most innovative platforms in the industry,” said Kevin Mullins, principal, business development for CoreLogic. “Additionally, with this new integration, INTEGRA LOS users will now be able to better streamline their workflows with a more complete solution offering from a single provider.”

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INTEGRA Software Systems’ web-based EPIC, loan origination system, spans point-of-sale through post-closing and secondary marketing for lenders interested in efficiencies gained from automating every step of their loan workflow.

“Since 1996, INTEGRA Software Systems is proud of its commitment to bring the very best software tools to our customers,” said Jerry Pratt, president, INTEGRA Software Systems. “In an effort to constantly add value for our clients nationwide, we are pleased to expand our CoreLogic offerings with the availability of the CoreLogic 4506-T Direct solution.”

Easing The Fulfillment Burden

Doc prep and compliance vendor DocuTech has partnered with Veri-Tax, a supplier of verification and ability-to-pay solutions, to automate the 4506-T IRS verification process in DocuTech’s flagship software, ConformX. This integration will enable ConformX users to submit tax transcript requests through Veri-Tax within the ConformX document software for simple 4506-T fulfillment.

“Compliance burdens in the industry place a great emphasis on a lender’s need for seamless partner integrations that can satisfy all requirements of the disclosure process,” said Scott K. Stucky, chief operating officer of DocuTech. “DocuTech’s partnership with Veri-Tax will automatically deliver tax transcripts to the customer in a designated secure folder, simplifying the disclosure process and guaranteeing compliance.”

The integrated service allows shared customers to easily satisfy IRS requirements by automating the verification process and enabling lenders to place and retrieve tax transcript orders within ConformX, where borrower information is already stored. It also enables lenders to leverage existing partnerships without implementing transformational changes and to comply with the Ability-to-Pay regulation recently finalized by the Consumer Financial Protection Bureau (CFPB).

“New compliance rules involving the IRS and CFPB present a significant challenge to lenders, which is why this integration with DocuTech makes so much sense,” said Maria Kirgan, Veri-Tax senior director of product management. “The combination of automated verifications and electronic documentation will greatly streamline the compliance process while improving loan quality and saving time for everyone—especially the consumer.”

DocuTech’s flagship software, ConformX, provides customizable solutions that assist lenders with the importation of information from a loan origination system into compliant documents. DocuTech anticipates integrating additional Veri-Tax verification services such as form SSA-89 processing, verifications of employment and verification of accounts in 2014, as well as offering additional integrations to auxiliary verification providers.

More “E” News

*More “E” News*
**By Tony Garritano**

TonyG***Yesterday I talked about how the migration to electronic processes is continuing. Today I have more proof to share with you. Communication Intelligence Corporation (CIC), a supplier of electronic signature solutions and biometric signature verification, was selected by QuestSoft Corp. to integrate legally binding electronic signatures in its IRS Form 4506-T service.

****“Our partnership with CIC allows our customers to leverage a proven technology to quickly and easily gather signatures on the 4506-T,” stated Bhavin Shah, QuestSoft VP of Development and Technology. “This added feature, which was approved by the IRS earlier this year, provides the benefit of significantly reduced processing times and rejection rates to all parties in a mortgage or other lending transaction.”

****Over the last year, CIC has played an active role working with the IRS on its acceptance of electronic signatures. CIC’s platform for legally binding signatures, iSign Enterprise, fully supports the IRS’ recently approved electronic signature requirements.

****“IRS approval of e-signatures on this high volume form represents a significant step forward in the overall lending process,” stated Robert Williams, CIC’s VP Sales. “We are excited to partner with QuestSoft and to be a part of this forward momentum.”

****The integrated solution is available for QuestSoft customers beginning August 1, 2013.

The Strong Will Survive

*The Strong Will Survive*
**By Tony Garritano**

TonyG***I talk frequently about the trials and tribulations of being an LOS these days. They are the system of record and with all these new rules, they are being forced to spend a lot of money just to keep their clients compliant. Well, as with most things in life, the strong will survive. The strong will continue to update their solution and stay ahead of this curve. To this end, I heard that the Encompass360 Spring Release contains more than 200 updates and enhancements and introduces significantly greater control and oversight of loan originator (LO) compensation plans.

****Major enhancements include:

****Improved LO Compensation Management: Helping mortgage lenders prepare for the January 2014 deadline for new Consumer Finance Protection Bureau (CFPB) rules by providing them with greater management, tracking and reporting capabilities over their compensation programs. With this upgrade, lenders can now establish and manage multiple compensation plans for both brokers and LOs. Encompass360 automatically applies the correct broker compensation plan to loans imported through Ellie Mae’s Encompass TPO Web Center, a secure web portal for lenders to work and interact with their third-party originator partners. This upgrade helps eliminate errors that can occur with manual calculations by automatically populating the information into the Good Faith Estimate for proper disclosure. In addition, the upgrade also maintains a financial history log for audit purposes.

****4506-T IRS Form eSignature Support: Giving loan originators the ability to accept e-signed 4506-T tax return income verification forms from the IRS when ordered through Encompass360’s integrated Encompass 4506-T Service powered by CoreLogic. Using Encompass 4506-T Service, originators can electronically order, send and receive e-signed forms. When the borrower returns an e-signed form, it can go directly into Encompass360’s secure electronic loan folder without first going through a third-party document service.

****Loan Quality Enhancements: Offering Ellie Mae Total Quality Loan (TQL) program participants greater and immediate visibility into the loan process by allowing the ability to track the status of ordered income, compliance, fraud and valuation services inside Encompass360. These enhancements also provide both lenders and investors better visibility into loan status.

****Investor Guidelines and Eligibility Rules: Providing lenders updated links to current major investor guidelines and eligibility rules inside Encompass360 via the integrated Encompass Product & Pricing Service. Additional functionality helps prevent Encompass360 users from offering invalid or stale pricing to loan originators when investors are re-pricing rate sheets.

****New Encompass Flood Service: Giving originators the ability to order flood determinations and certifications as well as Life-of-Loan services   directly from the Encompass360 loan file. This new service helps originators save time by returning flood certifications directly into the borrower’s electronic loan file within Encompass360.

****Expanded TPO WebCenter Capabilities: Furthering Ellie Mae’s commitment to provide additional channel support for wholesale and correspondent clients, the Encompass360 Spring Release also expands the capabilities of the TPO WebCenter by providing online status messaging to improve communications and visibility between lenders and their third-party originators.

****“Loan originator compensation continues to be a huge concern for both retail and wholesale lenders, and it looms even larger now with the June 1, 2013 effective date and January 2014 deadline for the new CFPB rules,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “Ellie Mae’s Encompass360 Spring Release includes sophisticated functionality to test for compliance, drive and monitor compensation plans and provide an audit trail for regulators, as well as many additional enhancements to help lenders improve loan quality and efficiency.”

****As I said when I started this column, the strong will survive. To this end, Ellie Mae will most certainly be one of those survivors.

What Will 2013 Bring?

*What Will 2013 Bring?*
**By Tony Garritano**

***Here we are on the cusp of a new year. So, what will 2013 bring with it? Here are three trends that I think will be big in the area of mortgage technology in the coming year:

****The Year Of The eSignature

****It’s about time. We’re finally seeing the last barriers to eSignatures drift away. “In light of the IRS’ decision to accept eSignatures I am very optimistic about 2013,” noted Christian Wright, Director, Mortgage & Financial Solutions at CIC. “I think we’ll see FHA approval of eSignatures in 2013. I also expect a renewed interest in the full eMortgage. The mortgage industry as a whole will become more comfortable with eSignatures rather than less comfortable.”

****Compliance Is Still King

****Ankush Dham, director of technology products and services at ISGN, concluded that he “expects the emphasis on compliance to remain at the forefront of technology initiatives. Technology will continue to evolve to provide more automation around tracking of compliance. When the final disposition of regulatory changes are announced, technology vendors will be busy implementing changes and designing functionality that will allow clients to effectively originate compliant loans.”

****Simply put, “Compliance tools will continue to emerge to support lending decisions and servicing measures,” added Kelli Himebaugh, Corporate Vice President, Mortgage Builder Software. “Experience has shown us that “best efforts” are not always enough to satisfy regulators, so additional tools and enhancements will increase visibility into all stages of the mortgage process, from origination through servicing.

****“Reporting and event tracking are perhaps the most obvious, with everything from email and conversation logs, to inspection and valuation reports open to regulator scrutiny. LOS solutions are well positioned to provide this, particularly as they include 4506-T results and every other conceivable document in electronic format. Digital document management will become a necessary part of the origination process in order to provide the transparency the new environment demands. Well-integrated pricing engines will record the loan program alternatives made available at the time of origination, bringing clarity into the fair lending concerns of various regulators.

****Servicing systems are under renewed scrutiny, and platforms aimed at the mid-tier segment will benefit from greater harmony with the LOS systems that create the loans they service,” concluded Himebaugh. “Presently, many of the steps required to transfer information from one to the other require intermediary steps where errors can occur. Systems that are designed to work together can enhance compliance by eliminating human error to a much greater degree.”

****Count Every Dollar

****Compliance aside, the other big issue for lenders in 2013 will be how they control their cost to lend. With refis making up less of the market, lenders have to smarter about how they go about creating the most cost effective lending process. “Leveraging technology to combat these rising costs is essential for all lenders, especially in the community bank market,” pointed out Daniel Liggett, Director of Client Services for Associated Software Consultants’ PowerLender Loan Origination & Processing System. “Sound business practice has these lenders turning to trusted third-party providers for their compliant technology solutions rather than attempt to maintain it in-house.

****“These lenders will continue to turn to technology providers that provide solutions that are flexible and cost effective and have the ability to deliver tested compliant solutions in an accurate and timely manner.