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Turning To Technology To Perform Loan Quality Reviews

Birdsey Group LLC, a nationwide real estate consulting firm that specializes in third-party due diligence reviews and mortgage quality assurance services, has selected the LoanHD platform for performing loan quality reviews.

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Prior to choosing the LoanHD platform, Birdsey Group was experiencing rapid business growth but spent too much time on internal manual processes, which was hampering the company’s productivity and ability to scale. After an extensive search, the company chose LoanLogic’s LoanHD platform, a Software as a Service technology that automates loan quality reviews, which enabled Birdsey to audit loans faster, more accurately and more consistently while providing the ability for the company to handle growing volume.

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“LoanHD has exceeded all productivity expectations and accelerated our turn times tremendously,” said Todd Grashaw, managing director of the Birdsey Group. “Our customers tell us all the time how much they like how clean and efficient our reporting and rebuttal capabilities are, which results in a competitive advantage over our competition. We couldn’t be happier with our decision.”

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“We are proud to be part of Birdsey Group’s loan quality management strategy, as the firm shares our commitment to ensuring accuracy, transparency, and reliability in the mortgage process,”  said Matt Woolley, senior vice president, sales at LoanLogics. “We look forward to a long and successful relationship.”

Woolley added that many companies like Birdsey Group are having trouble managing growth while simultaneously ensuring loan quality, a challenge that is likely to continue for the foreseeable future. According to Fannie Mae’s November Economic and Housing Outlook report, purchase loan originations are expected to increase substantially in 2017 and 2018. Yet lenders continue to face strict regulations and investor guidelines that add significantly to loan production costs.

“Facilitating growth while producing consistently accurate, compliant mortgages is next to impossible without leveraging technology that is capable of verifying and validating 100 percent of the data in every file,” Woolley said. “Not only does LoanHD ensure compliance, it’s a completely flexible, automated solution that makes it possible to eliminate loan file inaccuracies, which minimizes operational costs while facilitating growth.”

LoanLogics was recognized as one of the fastest growing technology companies in Deloitte’s Fast Technology 500 list after reporting revenue growth of 291 percent between 2012 to 2015. Much of LoanLogics’ growth has been attributed to the popularity of the LoanHD platform, which provides companies with all the capabilities they require to ensure loan quality while eliminating costly manual processes. Additionally, LoanLogics uses insights gained from its audit services to continually update its platform, a benefit that pure technology competitors simply don’t have.

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.

QC Vendor Launches TRID Enhancement

LoanLogics has released the enhancements to its Compliance Audit interface in support of the new TILA-RESPA (TRID) regulations that take affect October 3, 2015. The Compliance Audit interface is found within LoanLogics’ LoanHD platform. LoanLogics now provides the tools needed to identify, track and trend loan discrepancies and defects related to the use of the new closing disclosures. The result is that clients have the internal communication, training and documentation processes to audit their compliance with the new regulations.

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“LoanLogics has completed several TRID enhancements to our Compliance Audit interface to help clients cost effectively evaluate their compliance with TRID and relieve some of their concerns around defects related to these changes,” said Brian K. Fitzpatrick, President and CEO of LoanLogics. “Our technology can help drive a culture of lending where teamwork, timing, and tracking are paramount to ensure loan quality and compliance while reducing the manual tasks and associated labor costs.”

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Among the Compliance Audit interface enhancements made to comply with TRID are the following:

  • Triggers audit worksheets for the new loan disclosures based on the application data found within the loan file.
  • Automates data extraction for all key data fields in the new disclosure documents that are contained in a loan file, eliminating the need for costly data input.
  • Creates audit worksheets to support all versions of the new Loan Estimate and Closing Disclosure and order them correctly.
  • Provides an automated tool to enable the comparison of fee amounts across multiple versions of the disclosures, highlight differences and record the reasons and dates of changes.
  • Enables quick access to TRID related documents such as the Provider of Service List, Affiliated List and Change of Circumstance Letter (when applicable).

In addition, updates have also been made to LoanLogics’ LoanDecisions Product Eligibility and Mortgage Loan Pricing platform. These include changes to the Fees Setup screen and to the existing fee calculations.

About The Author

[author_bio]

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.

Seeking Out Appraisal Quality

Appraisal quality has become a critical issue for appraisal management providers, as recent industry regulations and guidelines have changed the way appraisals must be ordered, created, reviewed and stored. To this end, USRES has implemented RealView, Platinum Data’s flagship appraisal quality technology into its business practices. The partnership enables USRES to further improve quality control efforts by quickly, efficiently verifying appraisals for compliance, consistency and completeness.

“From our years of experience, USRES’ clients have come to expect the highest standard of quality for their appraisals,” said Keith Guenther, CEO of USRES. “As market conditions change and regulations create additional complexities for our clients, they are able to depend on USRES to ensure their business and compliance needs are met. Partnering with Platinum Data exemplifies our dedication to quality – the technology further enhances our ability to deliver the most accurate and expedient appraisals.”

In addition to reinforcing USRES’ dedication to quality and compliance, the company selected RealView for its ability to provide a comprehensive suite of tools and to fulfill a significant portion of its quality control processes with one RealView report. “After a careful evaluation of various technologies, we determined RealView was the only system that covers at least three key functions for every appraisal: it verifies compliance, provides a vehicle for compliant correspondence with the appraisers as well as determines the accuracy of the appraisal,” explained Guenther. “USRES has always believed that best quality appraisals result from a combination of technology and the expertise of knowledgeable appraisers; RealView gives us a powerful third-party validation tool to compliment our in-house auditing process.”

RealView is an analytical and business intelligence technology for appraisals, which accounts for factors like context and history when screening for the thousands of items that can compromise appraisal quality. It reviews and analyzes every aspect of an appraisal with far more depth, consistency and accuracy than a human ever could, all in less than two minutes. It screens for compliance with all relevant regulations, including guidelines set forth by the Uniform Appraisal Dataset (UAD), Uniform Standards of Professional Appraisal Practice (USPAP), Consumer Financial Protection Bureau (CFPB), the GSEs and other state and federal entities. RealView is the only technology of its kind built on a flexible, rules-based engine, which allows users to configure the technology to their custom specifications in a matter of days, rather than the weeks- or months-long turn times required by traditional appraisal review systems.

USRES has provided valuation solutions for more than 20 years, and in February 2014 introduced its valuation portal, which enables clients to automatically order, route, track and complete origination and default valuation orders. The company’s wholly owned subsidiary, RES.NET, serves the company’s needs as a nationwide appraisal management company, connecting all parties of a transaction for transparent, expedient communication.

“Like all smart companies, USRES knows the impact that quality and efficiency can have on its business and the bottom line,” said Phil Huff, CEO of Platinum Data Solutions. “We have a client that, as an oversight, failed to use RealView on one of their appraisals, which was later found to be flawed and resulted in a loan buyback. By implementing RealView on all of its appraisals, USRES is proactively protecting its sales, reputation and bottom line.”

About The Author

[author_bio]

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.

Safeguarding Loan Quality

Mortgage lenders are now operating in an altered lending environment, thanks to an onslaught of new regulatory requirements that mandate audit trails for virtually all lending decisions, complaint resolutions and life-of-loan interactions. These increasingly complex requirements are not adequately supported by traditional lending processes and business models. Financial institutions must now determine how to both streamline and safeguard compliance, and those that place loan quality and risk management at the center of their operations using an automated loan completion approach will be the ones to achieve a winning outcome.

Loan completion, the final process step to confidently creating a saleable loan unit, can be viewed as a new discipline in lending that leverages automation to track and control quality through continuous life-of-loan management. This approach includes the data transparency and audit trails necessary to support loan quality, loan servicing and loss mitigation. Many financial institutions are using technology to bring disparate systems manually tied together ever-larger excel spreadsheets and complicated process flows to manage data quality and secure access loan data and documents through origination, servicing and sale on the secondary market. What is required is a strategic focus on loan completion to reduce processing steps, costs and ensure quality throughout a loan’s lifecycle.

Traditional Lending Practices ended in 2010. Why won’t traditional lending practices work now? Lending has traditionally followed a linear model, which means there is a different team managing each operational step and little back-office integration. As a result, lending operations must cobble together information from a variety of systems and technology silos to prove that loan information is accurate, loan decisions have been fair, lender actions have been compliant and that all documentation is in place to sell the loan asset on the secondary market. Evidence that a lender is attempting to follow outmoded processes are the hiring of more FTE’s, temporary workers, more meetings and more spreadsheets and checklists. This approach increases lending costs to the point where many wonder why they are still in the business.

The biggest impact on lending practices has been new consumer protection and non-performing loan regulations, which were enacted in the last two years to track loans in foreclosure or near-default. Dodd Frank reform has tasked lenders with performing additional institutional examinations and the Consumer Financial Protection Bureau (CFPB) now requires lenders to document every complaint and resolution.

To keep pace, lenders have had to increase staff and functionality, adding to the complexity of systems and processes that lenders need to be compliant. Compliance is exponentially more difficult when different technology platforms or third-party systems are factored in. This complex concept of technology, process and compliance is codified by the CFPB in its discussion of the “Compliance Management System” mandate for January 2014.

When it comes to acquiring and selling assets on the secondary market, transparency is the most critical piece of the puzzle. The Private Mortgage Investment Act protects investors by requiring standardization and uniformity of mortgage securitization, transparency into all aspects of the securitization, and adherence to the rule of law.

The act encourages robust private investment in the U.S. mortgage market and as a result, has exerted added pressure on lenders’ Post-Closing area. These time-consuming processes are typically not automated, which forces lenders to use reams of paper and piece together workflows.

Asset quality begins with the loan origination process. To ensure loans are compliant from the start, lenders should focus on efficient data processing, automated task routing and process tracking. This stage is all about cost, time-to-close, collaboration, transparency, error discovery and correction, and overall data accuracy ? drivers that affect the lender’s ability to originate “clean” sales to the secondary mortgage markets.

Secondary market demand is forcing lenders to seek out quality assurance processes that speed time to market. However, in today’s multi-platform and manual processing environments – where quality control is challenged by data discrepancies and compounded by human error – speeding up the process may only exacerbate the situation.

Some lenders continue to struggle with the reality of loan buybacks in the secondary market, often a result of poor loan quality due to lax underwriting and document management. To improve the quality of mortgage portfolios, many lenders establish strong quality review workflows that identify problems sooner, and reduce risk and exposure. Multiple technology platforms, disjointed processes and multiple lending systems make this process much more difficult.

Loan servicers may struggle with integration and support, especially those that rely on systems beyond their servicing system of record or use add-on systems. Today, it’s critical to have transparency into reviews for acquisition/sale, early default, pre-foreclosure and payoff, as well as loan modification document routing. Tracking workflows and loan-level events across multiple systems is more challenging, but each step – loan origination, processing, post-close, delivery and servicing – must be scrutinized.

The right technology approach can mitigate risk, offset expenses, and improve quality control and customer satisfaction. A loan completion system automates loan quality processes into origination, servicing, loss mitigation and secondary marketing workflows.

Lenders need an effective loan completion system that goes beyond enterprise content management to capture point-in-time origination, related loan documents, and servicing and loan disposition events. A quality, auditable system also facilitates information sharing by making it possible to view and compare multiple loan documents and records from a single view.

Automating loan quality ensures that individual steps within the life-of-loan process are definable and traceable, and that loan data meets all quality standards and regulatory requirements. The loan completion system should be flexible and configurable so that lenders can design their loan completion processes to meet ever-changing regulatory demands and specific institutional needs.

There are five vital components of automated loan completion:

  1. Contextual Capture: Keyword data is extracted from scanned documents utilizing zonal OCR, intelligent templates, automated indexing and full document recognition
  2. Track: Automation tracks and reacts to maximize the consumer experience and minimize timelines
  3. Review: Processes support compliance and provide loan level data, remotely viewable documents, standardized packaging, pool reviews and electronic delivery
  4. Confirm: Quality controls are integrated into the pre-close audit, post-close audit, data validation and overall document readiness
  5. Deliver: Final validation and documentation are provided, including delivery of the completed loan document(s) to the correct destinations

Thriving in today’s lending space requires a centralized approach for managing loan quality and risk. Financial institutions that implement loan completion solutions will fortify overall lending and be positioned as industry leaders. Strategically using technology for loan quality assurance tool will help organizations overcome systems limitations, leverage secondary market opportunity, avoid compliance issues and enhance the life-of-loan experience for borrowers.

About The Author

[author_bio]

Gregg Lehman (Gregg.lehman@fiserv.com) is the product manager for Global Payment Solutions at Fiserv, a leading global provider of financial services technology solutions. Fiserv drives innovations that transform experiences for more than 16,000 clients worldwide, including banks, credit unions and thrifts, billers, mortgage lenders and leasing companies, brokerage and investment firms and other business clients.

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.

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.

Video Insights: Loan Quality Vs. Loan Quantity

*Loan Quality Vs. Loan Quantity*
**Industry Insiders Speak Out**

***What’s the difference between loan quality and loan quantity? Find out here. Our Straight Talkers Roger Gudobba and Kelly Purcell discuss the new subprime. Also, MortgageFlex details how integrations can enforce loan quality. Further, Michael Hammond schools you on how to craft a better presentation. Lastly, Tony Garritano breaks down the latest trends.
httpv://www.youtube.com/watch?v=mVA553YwgQw

Market Analysis: Get Creative To Avoid Buy-Backs

*Get Creative To Avoid Buy-Backs*
**By Tony Garritano**

***Everyone is trying to be risk averse. Nobody wants a buy-back. And investors are cracking down. Loans have to be ironclad these days. As a result, technology providers are trying to come up with new ways to support their lender clients. For example, origination vendor Ellie Mae is adding a loan buy-back insurance option to its Total Quality Loan (TQL) program. Here’s how it works:

****TQL is an initiative designed to further enhance the loan quality, compliance and salability of loans that are originated through Ellie Mae’s Encompass360 mortgage management software system. TQL offers a suite of fraud detection, valuation, validation and risk analysis services, tailored to individual aggregator/investor requirements. Ellie Mae’s technology enables correspondent lenders to share the findings and data from those services with investors and other stakeholders in the industry supply chain.

****Correspondent lenders participating in TQL can now choose to insure and be covered for losses of up to $100,000 per loan. Underwritten by affiliates of Lloyd’s of London and Liberty Mutual Group, the insurance policy protects lenders from losses due to borrower and appraisal fraud and regulatory non-compliance. For example, the policy covers a seller against claims based on misstatement of income or assets, employment and occupancy fraud, as well as collateral and valuation fraud. Similarly, it protects against loss if a loan is found to be non-compliant with various regulations, such as Federal Truth in Lending Act Tolerance Tests (HOEPA); Federal, State and Local High Cost Thresholds Review; Fannie Mae Points & Fees, and “HUD-HOEPA” Mortgage Thresholds Reviews.

****The coverage begins at the date of origination and lasts for three years. The policy’s coverage automatically transfers with ownership of the loan so that any party who owns the loan at the time a fraud or compliance error is discovered may file a claim under the policy directly rather than force the loss back to the original lender. While there is a cost to the lender for this coverage, this can be offset by lower loan reserves that are available to lenders with insured loans. Ellie Mae receives an administrative fee for each closed loan covered under a policy.

****The program is designed to offer enhancements to traditional programs available in the marketplace. If a fraud or compliance error is discovered, the party suffering a loss can file a proof of loss and determine whether or not it is covered before the amount of the loss has been determined. This allows efficient repurchase, scratch and dent sale or foreclosure options to be assessed with the knowledge that coverage exists. Often, insurance providers’ practices have prevented policyholders from learning whether or not coverage exists until other options for recourse have been completed (or lapsed).

****Arthur J. Gallagher Risk Management Services, Inc., a subsidiary of Arthur J. Gallagher & Co. (NYSE: AJG), one of the world’s largest insurance brokerage and risk management services firms, is the broker for the program. Justin Vedder, area senior vice president at Arthur J. Gallagher Risk Management Services in San Francisco explained, “This program is a validation of Ellie Mae’s TQL process. TQL customers adhere to rigorous origination standards and follow best practices and as a result automatically qualify for this exceptional coverage.”

****“Over the past several years, the GSEs and investors have put back approximately one hundred billion dollars worth of loans to originators,” said Richard Roof, Ellie Mae’s senior vice president of Business Development. “Our TQL program is a direct response to the industry’s demand for increased quality assurance. It is designed to give investors and sellers greater confidence in the assets that are being originated. Adding optional buy-back protection is simply a cost-effective extension of this concept and further mitigates risk.”

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.

Market Analysis: Looking For Quality

*Looking For Quality*
**By Tony Garritano**

***There’s a lot of talk about quality control. But how do you ensure quality? Technology can help. For example, PROGRESS in Lending has learned that mortgage industry professionals now have the ability to quickly verify property improvements through an interface between Byte Software’s loan origination system (LOS) and BuildFax’s national building permit database. Here’s how it works:

****Lenders are employing tighter underwriting standards and more closely scrutinizing collateral value in an effort to comply with industry best practices. The integration to Byte Software allows lenders to access BuildFax’ property intelligence, which delivers the additional layer of documentation needed to enhance loan quality, reduce transactional risk, and approve loans with greater confidence. Byte Software’s LOS offers timesaving automation of these due diligence efforts.

****BuildFax provides insight into pending and completed property improvements and condition not found in tax assessor data. This information can be highly beneficial to lenders as they work to validate loan value. More than 400 lenders already use BuildFax data in their loan approval and quality control processes. The Government Sponsored Enterprises (GSEs) acknowledge permit data as a trusted source for independent, third-party verification of property improvements and condition. In addition, the access Byte Software provides to the BuildFax database enables lenders to easily comply with emerging Uniform Appraisal Dataset (UAD) requirements.

****Joe Herb, General Manager of Byte Software, noted, “The interface will help lenders complete these essential validations quickly, enhancing underwriting and improving their customer’s experience.”

****“Lenders tell us all the time that building permit data helps them validate that a value-changing improvement was done to the subject property – a major benefit in this market environment,” said Holly Tachovsky, President of BuildFax. “Now I can tell those very same lenders, Byte and BuildFax have teamed up to make it easier for lenders to access this data by integrating with BytePro. The interface enables lenders to easily validate the property improvements and conditions on every loan. As a result, lenders can confidently say ‘yes’ to more loans, more often.”

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.

Video Insights: Talking Loan Quality

*Talking Loan Quality*

***Everyone talks about the importance of loan quality, but what does it mean? Over 125 mortgage executives gathered at PROGRESS in Lending’s ENGAGE 2011 industry event. They talked about real issues and solutions. A panel composed of distinguished technology vendors, service providers and lenders discussed how you can truly produce better quality loans today. Here’s what they said:

httpv://www.youtube.com/watch?v=LS0Lxfwy4ao

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.