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The Cost Of Real-Time Compliance

At a recent regulatory technology conference, RegTech Enable, two telling statistics revealed the mounting cost for financial lending institutions to maintain and respond to government compliance United States Bank paid out $150 bullion in fines, settlements and penalties since 2008, and financial institutions spent $70 billion on regulatory compliance, American Bankers Association reported that 84% of banks needed to hire more staff to manage the growing influx of information and changes.

Thomson Reuters Regulatory Intelligence monitors more than 950 regulatory rulebooks worldwide published by more than 550 regulatory bodies. In 2015, it reported that daily updates for the financial industry increased by 127% from just 68 per business day in 2012 to 155 in 2014. That adds up to a total of 40,603 in 2014 alone – more than double from the previous year. These updates are not restricted to legislation and published regulations – there are numerous sources from which to gather information on what is going to actually regulate a particular lender, including rulebooks, policy papers, speeches, and enforcement actions.

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The Information Pipeline

Approximately 70 individual regulatory entities sit at the center of lending compliance. The process of sifting through their many updates and requirements is layered, starting at the top with nationwide regulations on lenders produced by agencies such as the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), to name a few.

At the state level, regulations depend on the type of loan or specialized loan product. If a given lender wants to make a loan in Ohio for example, it needs to know which regulations apply to that loan type in that state. If the loan is sold, there is an additional layer of requirements imposed by the investor entity that must be considered.

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Investor organizations, including Fannie Mae and Freddie Mac, operate by a set of corresponding guidelines called “investor requirements,” which, alone, are thousands of pages worth of compliance requirements. That is thousands of pages of compliance requirements for a single mortgage loan in addition to implementing state-specific and federal lending regulations, reviewing enforcement actions regarding compliance, and knowing the subjectivity of regulation interpretations.

Lenders conducting business in multiple states must maintain the capacity to address that entire regulatory environment, because it determines the structure of the loan, documents, required disclosures, and eventually calculations for the interest rate, APR, and payment amounts.

There are varying degrees for how a regulator might regulate a particular mortgage lender.

Enforcement actions, for example, may not be consistent nor follow standard administrative procedures, but do indirectly regulate mortgage loans and therefore must be monitored and considered as well.

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Comprehensively, the environment for making a single family mortgage loan is a complex spider web of regulation.

It Takes A Village

Within a financial lending institution, compliance management should begin with the chief executive officer who tasks the chief compliance officer or perhaps an internal auditor with regulation implementation within the business practices. With the emerging RegTech sector, there are a number of technology solutions to help manage compliance from loan document preparation to mortgage portfolio analysis. But who is keeping up with the ever-changing rules of compliance? One day you are in compliance, and the next day you could be out.

Document preparation companies should be maximizing their collective compliance knowledge, building specialized teams stacked with individuals who have decades-worth of experience and are dedicated to overseeing and implementing the many changes mandated by regulatory agencies. To keep up with the quick pace of changes in today’s complex environment and properly implement compliance in real-time, teams must engage a range of experiences and skillsets, from attorneys and compliance experts to programmers and IT experts.

But it is not enough to simply monitor the updates; they must be interpreted, evaluated, integrated, and disseminated.

For example, if the CFPB issues a new regulatory interpretation about how lending disclosures are to be made on a particular type of loan, specialists must learn of that regulation and review it with their lawyers. If the lawyers determine that the regulation changes the status quo, they must identify which lenders and loans it affects and the impact it will have. This change could potentially disrupt the lending process of a single loan or multiple loans – requiring adjustments in documentation, marketing areas, and business practices – across the entire lending business. Once the lawyers determine what the change means and who is affected, there are three paths the information can take.

The first is directly within a loan operation and document preparation platform, which might require minor quantitative adjustments to calculations or data organization. If the change affects the financial institution’s operations, such as how loans are marketed or disclosed, the institution must address it directly. If the regulatory interpretation has a broader impact on a certain loan type or loan area, a more comprehensive analysis of how the change will affect the business at large needs to be conducted.

Managing Compliance In Real-Time

Keeping current is half the battle of any lender, but mortgage executives also shoulder the other half: forecasting.

Regulatory updates released daily are by-products of greater powers at play, trickling down from decisions made by the individuals in charge of each regulatory agency. The Director of the CFPB or the Chairman of the House or Senate Financial Services Committees are dictating the changes, directly impacting that particular agency and the regulations it issues or the legislation the committees may introduce.

To ease the burden and free up more resources for monitoring what is coming down the road, or simply because there is a lack of bandwidth, organizations can rely upon their document preparation company to manage the present day concerns.

It sounds understated to say that this is a major responsibility. Lenders are not only trusting document preparation companies to stay current on all the changes, but also to interpret them, incorporate them into the document packages, and make sure there are no conflicts or inconsistencies across the layers of compliance.

Dedicated teams with many years of collective experience are best suited for the challenge of managing compliance in real-time because they have the bandwidth and depth of knowledge to respond swiftly, accurately, and reputably. The greatest responsibility of a document preparation company is to ensure that regulations are understood and adjusted on a timely basis – whether immediate or taking effect on a specific date – so that documents always remain compliant.

For mortgage executives, that is one less thing to worry about.

About The Author

Michael L. Riddle

Michael L. Riddle is the managing director of Mortgage Resources Group, LLC., responsible for the overall operations of the firm. He guides the teams within the firm that develop and deliver “best in class” compliant disclosure and documentation systems to single family mortgage lenders throughout the country. Mr. Riddle is the co-founder and managing partner of the Middleberg Riddle Group, one of America’s preeminent mortgage banking law firms and, in that role, has spent much of his 40 plus year professional career providing advice and legal counsel concerning regulatory compliance, enforcement and litigation to clients including banks, mortgage lenders, insurers and related financial service entities.

To Solve Compliance Complexity, Look To Einstein’s Principles

In 1915, Albert Einstein proposed the general theory of relativity, where he explains gravity as a consequence, rather than a force. Anything of mass, he theorizes, has an equivalent amount of energy. And, the greater the mass, the greater the energy. E=MC2. And like Einstein’s mass-energy equation, compliance is the consequence of regulation.

Nearly twenty years later in 1934, The New Deal emerged along with the Federal Housing Administration, the 30-year mortgage loan, and a number of regulations to fuel America’s economic recovery, protect consumers, and increase home ownership among middle income brackets. The mass of the regulatory system was relatively small then, and the force necessary to counteract regulation only needed a relatively small amount of energy.

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Mortgage document preparation was a simple process thirty-plus years ago. Within 48 hours, you prepped a set of documents on an IBM Selectric typewriter, sent them to a title company with a note to close, and then shook the hands of a happy new homeowner.

In the same span of time that witnessed the typewriter’s evolution into a smartphone built for efficiency, the regulatory system grew more complex in equal opposition.

For every regulator action, there is an equal and opposite compliance solution.

The regulatory system of today is an expansive and complex environment embodied by a number of housing, finance, and regulation bureaus that dictate compliance for nearly every aspect of a loan. The mortgage industry alone supports an incredible variety of loan products and an immense amount of data, and a single document package can require nearly 60 compliance state and federal compliance checks.

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Take one mortgage document set and multiply it across the total number of mortgages produced in one state, and then again over several – or all 50 – states’ regulatory policies. The result? A very expensive mortgage origination process. It should come as no surprise that by the end of 2016, production costs per originated mortgage was at an all time high.

It’s no question that a lender’s focus to maintain a profitable origination business can be slowed by the ever-changing and ever-growing regulatory landscape. As the pressure on the industry mounts, so does the need for an equal and opposing force to effectively – and profitably – navigate it.

The financial tech (FinTech) and regulatory tech (RegTech) sectors have risen to the occasion by building Software as a Solution (SaaS) products. Over the past decade, the industry has accumulated a number of analytics tools and services while compliance-related tasks are still primarily performed across a wide staff. But, an increase in the number of tools and people to learn, implement, oversee, and manage those tools can be tricky. Banking is still people doing a job, and mistakes are a natural result.

Technology alone is not a perfect solution, either. For all the ease and accuracy technology can provide, the rate at which technology solutions are rendered outdated is exhausting. Many best-in-class tools struggle to adapt fast enough in the ever-evolving regulatory landscape when maintained by companies with a primary expertise in software and not compliance.

The exposure of a lender is twofold: out-of-date software exposes potential security risks and out-of-date regulatory systems expose potential compliance risks. Both can result in millions of dollars of recovery costs.

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For the documents space, this has taken the form of document prep programs that produce generic legal packages attuned to state regulations, but are not customized to a specific product or to a unique variability that may have specific state regulations. While there are many one-size-fits-all solutions, this can lead to challenges when it comes to maintaining compliance.

An Ecosystem of Mortgage Compliance. E=MC2.

The DIY solution to maintaining compliance would take any institution thousands of hours of research and manpower to implement policies that adhere to federal and state regulations, not including the technical know how to build a platform to manage it.

While the complexity facing the industry appears daunting, the answer exists at the intersection of regulatory, legal expertise and technical mastery: a holistic and advanced ecosystem of mortgage compliance (E=MC2). The true best-in-class solutions crossbreed software engineers with experts steeped in regulatory compliance knowledge. The result is a holistic compliance management systems (CMS) maintained on both fronts.

Effective compliance management ecosystems can and have served the financial services industry for the better, guiding institutions safely through any potential risk. Bonus: CMSs are supported – and even encouraged – by the federal government.

A well-run, wide range, and comprehensive system that includes policy, procedures, testing, controls, automation, and risk assessment lead to examiners reviewing banks more favorably. The Consumer FInancial Protection Bureau (CFPB) has been direct in saying that the more comprehensive a CMS, the more they will believe in a bank.

While still relatively new, there are integrated tech solutions built on the backbone of legal, financial, and regulatory ecosystems that produce compliant document packages on one end and proactively manage redlining and fair lending risk on the other. Compliance technology can minimize errors, automate processes, save time and resources.

With an all-inclusive approach, institutions can access an incredible number of compliance solutions including dynamic document preparation, data validation and testing with legal backing and HMDA, CRA, REMA, geocoding, and Fair Lending solutions. The right solution will improve the agility and speed of these diverse compliance platforms across an enterprise in a controlled, transparent, and organic way.

And while the industry might immediately view CMS a proactive and offensive approach, it is also a good defense. Think of it like a well-protected house: the more prepared you are for a break in, the less likely it is to happen.

For an industry that has been slow to innovate, the emergence of a sustainable, smart, and reliable compliance ecosystem fosters an incredibly pioneering environment in which to manage regulatory changes and deadlines.

These expertise-fueled compliance ecosystems can empower financial institutions to react to the ever-growing regulatory mass with equal force. The weight of the regulatory system is counteracted by the power of integrated compliance tech solutions. And by alleviating the burden of regulation, banks can focus on profitability knowing it is no longer a weight they need to carry alone.

About The Author

Michael L. Riddle

Michael L. Riddle is the managing director of Mortgage Resources Group, LLC., responsible for the overall operations of the firm. He guides the teams within the firm that develop and deliver “best in class” compliant disclosure and documentation systems to single family mortgage lenders throughout the country. Mr. Riddle is the co-founder and managing partner of the Middleberg Riddle Group, one of America’s preeminent mortgage banking law firms and, in that role, has spent much of his 40 plus year professional career providing advice and legal counsel concerning regulatory compliance, enforcement and litigation to clients including banks, mortgage lenders, insurers and related financial service entities.

The Evolution Of Mortgage Banking Compliance

The mortgage document preparation was a simple process thirty-plus years ago. Within 48 hours, you prepared a set of documents on an IBM Selectric typewriter, sent them to a title company with a note to close, and then shook the hands of a happy new homeowner.

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In the same span of time that witnessed the typewriter’s evolution into a handheld supercomputer built for efficiency, the regulatory system in equal opposition swelled in complexity. For lenders, maintaining a profitable origination business is often hindered by the ever-changing and ever-growing regulatory landscape. Unable to keep up, lender’s tend to respond with knee-jerk reactive solutions that risk heavy fines for minor oversights.

The emerging financial tech (FinTech) and regulatory tech (RegTech) sector has produced a number of Software as a Solution (SaaS) products and tools to help compliance teams. But they too come with their share of challenges. For one, tools require people to learn, implement, oversee, and manage them, and human error is a natural result. Second, many legacy tools are maintained by companies whose primary expertise is in software, not compliance, which exposes users to potential compliance risks. On the flipside, outdated software exposes lenders to potential security risks. Both can result in millions of dollars of recovery costs.

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Unfortunately, the DIY solution to maintaining compliance would take thousands of hours of research and manpower to implement policies that adhere to federal and state regulations. The need for compliance, data, technology, and management to exist within the same ecosystem is greater than ever. The best-in-class solutions are cross-bred Compliance Management Systems (CMS) built by software engineers and maintained by a team of experts steeped in financial law and regulatory compliance knowledge.

Effective compliance management ecosystems can and have served the financial services industry for the better. They are also supported – and even encouraged – by the federal government. The more comprehensive a CMS, the more the CFPB says it will believe in a bank.

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With an all-inclusive approach, institutions can access a number of compliance solutions including dynamic document preparation, data validation and testing with legal backing and HMDA, CRA, REMA, geocoding, and Fair Lending. The right solution will improve the agility and speed of these diverse compliance solutions across an enterprise in a controlled, transparent, and organic way.

And while the industry thinks of CMS as being proactive and offensive, it is also a good defense. Think of it like a well-protected house: the more prepared you are for a break in, the less likely it is to happen.

For an industry that has been slow to innovate, the emergence of a sustainable, smart, and reliable compliance ecosystem fosters a pioneering environment in which to manage regulatory changes.

These expertise-fueled compliance ecosystems can empower financial institutions to respond agilely to the ever-growing regulatory landscape. And by alleviating the burden of regulation, banks can focus on profitability knowing it is no longer a weight they need to carry alone.

About The Author

Kathleen Mantych

Kathleen Mantych is the senior marketing director for MRG Document Technologies, a provider of legal compliance and dynamic compliant document preparation software technology to lenders nationwide. With more than 26 years experience in the mortgage industry, Mantych has held executive sales, product and alliance management positions with key mortgage technology providers. Dallas-based MRG is a document preparation practice group within the law firm of Middleberg Riddle Group putting the company in the unique position of its dynamic document content being created and tested by an in-house team of compliance attorneys. MRG owns its own legal content as well as its own calculation engine and compliance tests, ensuring accuracy for its lender customers.

MRG Responds To Significant Growth By Hiring Industry Vet

Dallas-based MRG, a mortgage banking compliance organization, provides the mortgage industry a blend of compliance, unique and tailored document preparation, and technology, products, and services, is proud to announce the hiring of Chris Anderson. Anderson will be responsible for handling the increased demand for MRG’s products and services through new client acquisition and adding value to the existing client base by delivering an extensive array of best-in-class compliance solutions.

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Anderson has more than 20 years of account growth and management experience in the financial services and software industries. A former chief business development officer at Lending QB, Anderson played a significant role in expanding LendingQB’s footprint in the mortgage industry. Most recently, he served as executive vice president of sales at ISGN, a leading provider of loan servicing and default management systems for the residential and commercial lending industries. Anderson’s previous roles include executive vice president of sales and marketing at Docutech, a provider of compliant document solutions for residential lending, and general manager and business head for WIPO Gallagher, a provider of technology and business outsourcing services for the mortgage banking and lending industries.

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For more than 35 years, MRG’s highly respected staff of compliance experts has been providing lenders with legally defensible compliance expertise. Their unparalleled compliance solutions combine years of real estate law experience, in-depth compliance insights with state-of-the-art technology to document mortgage transactions. Their solutions provide industry leading built-in compliance checks to mitigate risk and alleviate compliance guesswork.

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“Given MRG’s significant growth, we needed a mortgage technology veteran who understands the constantly changing compliance landscape and the demands of today’s lenders,” said Mike Riddle, managing director of Mortgage Resources Group, LLC. “Chris has extensive experience in helping lenders respond to changing market conditions through the use of advanced technology. I am confident that Chris will apply those skills as we proactively work with our ever-growing client base.”

“The regulatory environment for today’s mortgage lender has become exceedingly complex, lenders are looking for solutions to ease their compliance burden,” said Anderson. “MRG has extensive legal expertise and best-in-class compliance solutions to meet those challenges head on.”

Vendors Integrate Doc Prep And Digital Closing Platforms

Pavaso, Inc. (Pavaso), a provider of digital closing and collaboration solutions for the mortgage and real estate lifecycle, has partnered with Gregg & Valby, LLP (Gregg & Valby), a Texas law firm and technology provider with a 40 year history of representing financial institutions and independent mortgage companies.

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The partnership will integrate the technologies of both companies, allowing for a seamless transfer of nationwide closing documents into the Pavaso Digital Close platform electronically. Gregg & Valby serves clients across the country in document preparation and legal and regulatory compliance matters for both mortgage loan origination and servicing activities. The Firm also provides nationwide mortgage loan fulfillment services.

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Pavaso’s Digital Close is a powerful closing solution that enables mortgage lenders and their business partners and consumers to communicate, collaborate and work in one central virtual location. This alliance not only meets the demands of today’s tech savvy consumers, but it streamlines workflows, provides extraordinary efficiency and helps organizations increase productivity by eliminating manual steps.

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Gregg & Valby Managing Partner, Scott Valby, feels the partnership will create a powerful advantage for clients. “We represent firms and people seeking maximum results and superior service,” said Valby. “Pavaso is the proven industry leader when it comes to making the transaction seamless.  For our clients, that means optimal efficiency; a smooth customer experience, and, above all, the very best results.”

“Gregg & Valby is renowned for its service, results and integrity, which promises outstanding results for this partnership,” said Mark McElroy, President and CEO of Pavaso. “We eagerly anticipate delivering the tools and expertise needed for the Firm and its clients to evolve and achieve digital transformation. Partnerships like this demonstrate which firms are choosing to create a better path for consumers by providing a modern, transparent way forward.”

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Compliance Expertise Is In High Demand

Compliance experts are being sought out. For example, for over 35 years, Dallas-based MRG, a mortgage banking compliance organization, has provided to the mortgage industry at large a blend of compliance, document preparation and technology, products and services. To this end, MRG compliance expert Marsha Williams has been asked to share her extensive compliance expertise at the following upcoming industry events:

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Texas Association of Bank Counsel Convention – Bastrop, TX – September 20 – 22

“What’s Happening in Residential Mortgage Lending?”

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MBA Risk Management, QA & Fraud Prevention Forum – Miami, FL – September 24 – 26

“Construction Lending”:  Compliance and Risk Management”

In today’s constantly changing regulatory environment, MRG’s compliance expertise is in high demand. MRG’s team of compliance experts recognizes the business imperative of proactively monitoring and continuously analyzing regulatory changes, trends, and impending regulations that impact your business. MRG’s team of professionals is constantly on alert for changes from all federal, state, local and investor requirements to provide lenders with up-to-date compliance insights.

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As a lender, you should be focused on generating and maintaining a profitable business in this volatile market, rather than constantly worrying about the enormous and ever-changing regulatory landscape. Your burden is too great, and the risk is too high to rely solely on your internal staff to provide legally defensible compliance.

As a result lenders should turn to the experts that other leading providers and industry sources trust like MRG and others.

About The Author

The Old Doc Prep Roadmap Is Obsolete

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As a lender, we believe your focus is, increasingly, on generating and maintaining a profitable origination business in this volatile market. Constantly worrying about the enormous and ever-changing regulatory landscape can be an unwelcome interruption. Your burden is too great, and the risk is too high, to rely solely on internal staff, or outdated doc prep, to provide legally defensible compliance in the origination process.

As regulatory pressures mount, there is an immediate and compelling need to re-evaluate and update your institution’s capacity to continuously analyze and competently implement mandated changes. This impacts your ability to produce compliant disclosures and documents for all your lending needs.

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As a lender, document preparation is always a major concern. The smallest error or omission can lead to:

>>Regulatory Fines & Damage Settlements. Failure to prepare documents in a way that aligns with both local and federal regulatory requirements can result in fines from regulators as well as class-action lawsuits from borrowers. These fines could drain millions of dollars from a lender’s cash flow.
>>Reputation Damage. The inevitable negative press that accompanies any kind of lending violation could impact the lender’s public reputation. The specific effects of such a blow to a lender’s reputation will vary from case to case but could result in lost loan origination opportunities or drive away potential business partners.
>>Restrictions on Lending Operations. Some lenders may face official restrictions on their lending operations as a result of a regulatory compliance violation.

What Should a Compliant Document Solution Roadmap Include?

The ideal solution must include compliance and legal guidance, dynamic document technology, and industry expertise, to help you navigate these challenging market conditions.

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To be more specific, the ideal compliant document solution mitigates your risk and provides you with a competitive advantage by delivering:

Total Residential Loan Program Coverage

One major problem is that most doc vendors specialize only in a few document types or in one region—forcing lenders to retain multiple vendors to cover all of their verticals & markets.

The ideal solution provides a 360º solution beginning with initial disclosure and ending with post-closing services while encompassing everything in between. With this total coverage, lenders can simplify their processes because they no longer need to seek out multiple providers.

Specialization in a Wide-Ranging Product Mix

Using a special team of lawyers with long careers in the home lending industry, the ideal solution offers expertise in numerous specialty products (or common products with unique characteristics) such as:

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>>Texas Residential Loan Documents – Texas is unique in the nation because it requires home loan closing documents to be prepared by a Texas licensed attorney. The ideal solution has a team of Texas licensed attorneys who prepare all Texas document sets more efficiently than the competition and in perfect compliance.
>>One-Time Close Construction to Perm Loan Documents – The ideal provider works with lenders to customize their one-time close documents to fit their specific construction-lending program.
>>HELOCs – Each lender configures their HELOC program differently and the ideal provider can work with any lender to customize their document solution to adhere to their unique program. Many doc prep providers are unable to customize their HELOC documents.
>>Post-Closing documents– The ideal solution provides documents for loan assumptions, loan modifications, lien releases and FHA and USDA partial claim mortgages.
>>Complex characteristics – The ideal solution specializes in the unique and complex where other vendors cannot. For example, the ideal solution can provide documents for loans where the borrowers are a double trust.

This ability to focus on specialty products that other doc prep vendors often don’t carry helps provide complete compliance for lenders in different markets and verticals, while maintaining overall disclosure and document uniformity across the lender’s entire product mix.

Built-In Compliance Checks

The ideal solution runs compliance checks of each and every closing package it produces to ensure it is in compliance with the requisite federal and state regulations. These checks include (but are not limited to):

>>TRID

>>QM

>>HOEPA

>>State Consumer Credit Laws

The ideal provider creates, manages, and integrates these checks internally—many vendors have to run these checks through an additional, outsourced product such as Mavent, Compliance Analyzer, or Pred Protect.

The ideal provider is confident enough in this internal compliance system to warrant the accuracy of its calculations, disclosures, and document packages (and to back these warranties with $10 million in E&O insurance).

Seamless Loan Origination System Integrations

The ideal solution is integrated with the majority of the largest Loan Origination Systems (LOS) on the market and can integrate with any LOS provider.

No Redraw Fees

When a loan officer orders a closing package, there’s often a need to order another closing package a little later (usually because of user error or last minute adjustments) to complete the closing. On average, a lender will order about 2.5 closing packages per closing.

Most doc prep vendors charge a fee for ordering an additional closing package. This inflates the cost of each closing and, worse yet, these redraw fees cannot be passed on to the consumer. Lenders have to eat the redraw fees of most doc prep vendors out of their own pocket.

However, the ideal provider does not charge for redraws, so lenders are only charged once for a closing. This saves expenses and removes an element of stress from the process.

Not All Document Solutions and Vendors Are Created Equal

MRG Docs is our powerful platform for the dynamic creation and seamless delivery of perfectly accurate residential mortgage documents. Our disclosure, closing document and servicing document solutions combine years of real estate law experience and in-depth regulatory insights with state-of-the-art technology to competently document mortgage transactions. Each document package is delivered with a series of built-in checks to guarantee compliance with applicable state and federal regulation.

MRG’s team of attorneys and mortgage experts recognize the business imperative of proactively monitoring and continuously analyzing regulatory changes, trends, and impending regulations that impact your business. Our team of attorneys is constantly on alert for changes from all federal, state, local, and investor requirements to provide you with up-to-date compliance from a source you can trust.

About The Author

Michael L. Riddle

Michael L. Riddle is the managing director of Mortgage Resources Group, LLC., responsible for the overall operations of the firm. He guides the teams within the firm that develop and deliver “best in class” compliant disclosure and documentation systems to single family mortgage lenders throughout the country. Mr. Riddle is the co-founder and managing partner of the Middleberg Riddle Group, one of America’s preeminent mortgage banking law firms and, in that role, has spent much of his 40 plus year professional career providing advice and legal counsel concerning regulatory compliance, enforcement and litigation to clients including banks, mortgage lenders, insurers and related financial service entities.

Docutech Expands Its Operations

Docutech has expanded its operations with the opening of a new office in Scottsdale, Arizona. In addition to the corporate headquarters in Idaho Falls, Idaho, the new office will serve to support the company’s growth initiatives with key roles in Operations, Finance, Sales and Marketing.

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Leading operations for Docutech is newly appointed President and Chief Operating Officer Amy Brandt, who holds more than 20 years of executive level experience in the mortgage and software industries. As President and COO, Brandt oversees daily operations, including business strategy and optimization, innovation, product development and execution, go-to market strategies, and client and employee growth and retention.

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“Docutech is committed to continuing to innovate and provide the technology and services needed to help drive the digital evolution of the mortgage and consumer lending industries,” said Brandt. “Our operations expansion into the Scottsdale market is a reflection of our commitment to support the digital evolution of the industry and the growth of our leadership position.”

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Docutech’s innovative solutions enable lenders to quickly generate and customize loan documents, significantly reduce operational costs, improve overall productivity, and optimize the customer experience. Docutech’s flagship solution, ConformX, is a document generation engine that integrates with Loan Origination Service (LOS) platforms to seamlessly produce compliant loan origination documents. In addition, ConformX offers lenders a range of complimentary technology capabilities to optimize the lending process and improve compliance, including Solex eSign enabling documents to be signed anytime, anywhere, through any device.

“At Docutech, we are driven to deliver best-in-class enterprise digital lending document and compliance solutions and service. We carefully selected Scottsdale, Arizona for the expansion of our operations given the area’s depth of industry talent,” said Ty Jenkins, Founder and CEO of Docutech. “We are thrilled to be part of this community and look forward to ongoing growth and to continue to serve the evolving needs of the lending industry and their customers.”

Docutech’s new office will be located in the Lincoln Towne Centre building at 4250 N. Drinkwater Blvd. in Old Town Scottsdale.

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Docutech Names Amy Brandt As President And COO

Docutech has named Amy Brandt as its new President and Chief Operating Officer. In this role, Brandt will be responsible for leading all aspects of daily operations, including sales, customer support, marketing and product development.

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Bringing more than 20 years of mortgage and software industry experience to Docutech, Brandt most recently served as President of Originations and Corporate Technology at New Penn Financial. At New Penn Financial, Brandt oversaw all origination channels, including direct-to-consumer products, third party originations and retail. Prior to New Penn Financial, Brandt served as Chief Operations Officer of Prospect Mortgage, where she enhanced day-to-day operations and transformed the lender’s technology infrastructure.

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“Docutech has experienced significant success by providing industry-leading document and compliance services to financial institutions over the past two decades,” said Ty Jenkins, founder and CEO of Docutech. “As we continue to expand our product and service offerings as an enterprise lending solutions leader, Amy brings the leadership and expertise needed to optimize Docutech’s operations to better serve our customers and realize our growth potential.”

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In addition to her executive career, Brandt is currently a Board Member of Sun to Water Technologies, and she is a Scholar Rescue Fund Advisory Board Member with the Institute of International Education. She is a former Board Member with Source Corp Inc. and a former Board Member and Capital Founder with Bluebeam Software Inc. Amy is also the former Chair of Your Music America and was a Federal Housing Policy Council Member with the Financial Services Roundtable. Brandt holds a Juris Doctorate from Arizona State University College of Law and a Bachelor of Arts in Political Science from the University of Southern California.

“Docutech is well-positioned to be the premier provider of enterprise-wide lending solutions to financial institutions of all sizes,” Brandt said. “I look forward to leading Docutech to provide the highest level of value, service and innovation to banks and lenders in the coming years.”

Certainty Amidst Uncertainty … Looking Ahead

The presidential election brought an end to a long period of uncertainty that caused market fluctuations and delayed business planning decisions as well as considerable speculation on what changes are in store. As we navigate the post-election landscape with the new administration, many questions remain uncertain for the mortgage banking and financial services industry.

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For example and as a very brief snapshot of the changes this industry may encounter, the presidential platform proposed and could greatly change or amend Dodd-Frank for starters. Along with that comes the possibility of restructuring and scaling back the CFPB’s authority, potentially replacing the single director structure with a commission and maybe reducing its funding. Technology will be of concern. Companies whose business depends in part or substantially on data might see increased and imposed regulation. Amending HOEPA…looking at HMDA reporting…FHA mortgage insurance fees…GSE reform…all this and much more is being scrutinized to facilitate and effect change for mortgage, banking and credit union regulation or deregulation as the case may be.

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The amendments and changes being discussed are sweeping and encompass the entire lending community. While policymakers on the hill decide on what that landscape may be, the lenders and third party providers will need ample time once again to prepare. They will need to adapt and update their LOS platforms as well their policies and procedures to conform and meet any new compliance requirements. Hundreds of thousands of hours in legal research, development and implementation over Dodd-Frank and the CFPB to deliver a worry free loan to the consumer will have to be reworked. All that said, the high priority of compliance and loan quality will and should remain even in the event of less stringent regulations. Continued focus on a compliant loan will mitigate risk and any undue scrutiny for fines or buy backs.

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Despite all the unknowns and uncertainty to follow, there is one certain element a lender can and should rely on – their compliance partner. In addition to the immeasurable time it takes to be in compliance today, the lending community has also spent significant money and effort expanding compliance resources to their back office operations to accommodate the swell of regulations. It is imperative through these changing times that lending operations remain steadfast to and build a tighter connection with their compliance partner, their document preparation partner and their legal and compliance services partner. There is no better time like the present to improve the consumer experience and pursue innovative and cost effective methods with a unique offering of all components of the compliance spectrum. A partner that will monitor and make all necessary compliant documents, calculations, state or federal changes for the lender, worry free, speaks volumes of certainty in an uncertain time.

About The Author

Kathleen Mantych

Kathleen Mantych is the senior marketing director for MRG Document Technologies, a provider of legal compliance and dynamic compliant document preparation software technology to lenders nationwide. With more than 26 years experience in the mortgage industry, Mantych has held executive sales, product and alliance management positions with key mortgage technology providers. Dallas-based MRG is a document preparation practice group within the law firm of Middleberg Riddle Group putting the company in the unique position of its dynamic document content being created and tested by an in-house team of compliance attorneys. MRG owns its own legal content as well as its own calculation engine and compliance tests, ensuring accuracy for its lender customers.