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Lenders Can Cash In

It’s not all gloom and doom. Sure, lenders face plummeting profitability levels from falling refinances, rising origination costs and increased competition. However, cost management strategies can be employed to reduce expenses.

“Everybody is trying to reduce hands-on time,” said Jim Pippin, Director of Product Development at National MI. “They are trying to do electronic feeds so there are not as many manual imports. You also need to find specialty vendors to handle certain tasks that they specialize in.

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“In this market, leads falling out of the pipeline is especially costly. There is a lot of money spent there and when the lead doesn’t close because the prospect is always shopping, that costs the lender a lot.”

Jim Pippin is director of product development at National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings, Inc. (NASDAQ: NMIH). National MI is a private mortgage insurer based in Emeryville, CA. Pippin is involved in all facets of product development and launch, including design, pricing, operations and sales training. Prior to National MI, Pippin held senior positions at Genworth, Bank of America, Capital One and General Electric, where he earned a Six Sigma Black Belt. He holds a B.S. in Industrial Engineering from North Carolina State and an MBA in Business Administration from Wake Forest University.

He sees Quicken as an example of a lender that does a great job managing cost. “Quicken runs a very tight shop. They don’t have many errors. They use technology to manage their process and all the lenders are trying to compete with them.

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“When lenders introduce technology they just duplicate their existing process instead of changing the process or eliminating steps. Lenders have to be careful to grab technology that will genuinely help their business,” noted Pippin.

So, where are the biggest pockets of inefficiency for lenders and how can they address these areas? “We have a lender that had 5 to 6 different checklists that had to be completed manually. We came in, used technology and automated 90% of that work,” said Matt Woolley, SVP of Sales at LoanLogics.

“The rise in cost is in correlation to the amount of regulation. We are getting close to $10,000 to originate a loan. These rules have brought on new processes that are very manual and cost consuming. Lenders need to trust technology.”

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Woolley leads the National Sales team and is responsible for establishing and executing LoanLogics sales strategies and managing the sales team activities related to the all LoanLogics products, including the mortgage industry’s first Enterprise Loan Quality Management and Performance Analytics platform. He has held a variety of positions in sales and management in the mortgage technology and financial services industries with clients ranging from Government agencies, top 5 lenders, MI companies, as well as lenders, banks, and credit unions of all sizes across the country.

He warns that while technology can help lenders reduce cost, they have to be smart about their technology decisions. “Lenders need to avoid the shinny object syndrome. Lenders shouldn’t get caught because not every technology can provide the level of efficiency promised. Second, you have to have the right culture. If you are trying to hold on to old manual processes you won’t succeed. You have to be open to technology and process change.”

The company recently introduced HMDA Audit, a new module for the company’s LoanHD Loan Quality Management platform that helps lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA) taking effect January 2018.

Under HMDA, lenders must collect and report demographic and geolocation data for all mortgage transactions and pre-approvals, whether the loans were funded or not. HMDA Audit helps lenders ensure that all HMDA data associated with originated and non-originated loans is accurate and validated for compliance. It also provides lenders with a comprehensive audit trail, which can be readily accessed for use with regulators.

Patrick Kelly, EVP, National Sales at Informative Research, advises lenders to embrace as many fixed-cost solutions as possible. “There are tools that can drive the beginning process to help you qualify borrowers. You also want fixed pricing strategies for things like 4506-T, etc. You want to move to a fixed cost model so you don’t have wasteful spend.

“For example, there are pricing strategies that can be used. You need to track the borrowers that will stick and not just every borrower. In addition, lenders can form closer relationships with builders and others. Lenders often buy technology that they don’t use or it doesn’t fit into their revenue model,” added Kelly.

With over 45 years of experience in the mortgage industry, Kelly’s expertise covers all aspects of the mortgage industry and process, from appraisal and operations to loan production and support. Having been with Informative Research for over three years, he’s played a critical role in building and managing their current national sales team.

And going forward, Kelly doesn’t see lending getting much more affordable unless lenders do a better job automating. “The Bureaus will continue to raise their price for credit and the other sources will raise their prices, as well. If you can use technology to automate these services you can save some money, but I think you need a lot to happen before you’ll see overall cost go down.”

“If people get more comfortable with the regulation, things will calm down,” added Jim Pippin of National MI. “Some lenders have the checker checking the checker right now. Also, lenders will get more comfortable automating as times goes by. It will happen.”

“Rules-based technology will reduce cost,” concluded Matt Wooley of LoanLogics. “Through automation underwiters can do eight or more loans a day. There is an opportunity for the cost to originate a loan to come down, but there are still a large number of lenders that are not willing to change how they do things and really automate. Some have been burned by failed implementations, but until they embrace automation and process change the cost to originate will increase.”

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.

Cary Burch Joins LoanLogics Board

LoanLogics, a provider of loan quality management and performance analytics, announced that Cary Burch has joined the company’s board of directors. A veteran of several national financial services and information technology companies, Burch will leverage his two decades of experience in the IT, legal and financial services industries to help LoanLogics expand its products and achieve long-term growth.

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Most recently, Burch served as chief innovation officer with Thomson Reuters, a multi-billion dollar global information solutions company. His previous roles include CEO of Lender Support Systems (LSSI), a mortgage technology provider; COO of Fidelity National Information Services; and CIO of First American’s Consumer Information Group and president of First American CreditNet. Earlier in his career, Burch served as senior vice president and CIO of Advanta Mortgage and vice president of  strategic technologies and CIO for First Franklin Financial. He serves on the board of directors for Palomar Health Foundation, which provides healthcare services to communities in Riverside and San Diego counties.

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“We consider ourselves very fortunate to have Cary join our board, as he brings a unique blend of experience in information technology and financial services markets as an operator, innovator, technologist and experienced investor,” said Brian Fitzpatrick, founder and CEO of LoanLogics. “We expect Cary to play a valuable, active role in helping us form the direction of LoanLogics and continue to expand the breadth and depth of our solutions across the mortgage and financial services industry.”

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“I am thrilled to join the board at LoanLogics, a company led by an experienced team with deep roots in the mortgage industry,” Burch said. “Today’s mortgage industry requires greater understanding of loan data, and LoanLogics has the technology and capabilities to quickly and accurately extract, analyize and review loan data for risk and performance. I look forward to leveraging my experience in the mortgage, legal and private equity markets to help LoanLogics capitilize on its strengths while pursuing new applications for its groundbreaking technology.”

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.

Updated Platform Now Alerts Lenders To Loan Defects

LoanLogics has enhanced its LoanHD Loan Quality Management platform with an Audit Response Center (ARC). The new ARC enables mortgage lenders to efficiently address defects and conditions on loans immediately after each loan has been reviewed. Importantly, it also provides lenders with a compliance trail showing how each defect was addressed, so regulators and investors are able to clearly see what actions were taken.

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The ARC allows the lender to auto-assign a respondent, or the person in the lender’s organization who will submit rebuttals and clear loan defects, such as a missing document or an incorrect fee. The system configuration also identifies “responsible parties,” or the people most responsible for the defect in the origination process.

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The ARC includes a communication module that immediately notifies the respondent and the responsible party of defects discovered after a loan quality review. These notifications will also display responses from the auditor regarding the curing of conditions. The respondent will be prompted to log into the ARC portal to address all issues. Once resolved, the application automatically updates the LoanHD platform.

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This capability enables lenders to have complete visibility into the process, while making sure defects are addressed in a timely manner. Further, lenders can create action plans in LoanHD based on the frequency and sources of defects. These plans can then be easily monitored and tracked to reduce future origination defects.

“With this enhancement to LoanHD, relevant parties in the loan process will find out quickly if there are any defects or conditions in a loan that need to be addressed,” said Dave O’Malley, director of loan quality solutions with LoanLogics. “In addition, lenders will be able to track the progress of defect resolution and make sure the appropriate person in their organization responds to the issue or issues expeditiously.”

“At the same time, there is a compliance trail that shows how each defect was addressed,” O’Malley said. “Regulators and investors not only require lenders to find and resolve issues with loans, but they also would like them to show proof of what they did. This enhancement provides that level of detail so lenders are covered.”

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.

Integration Seeks To Increase Loan Quality

First American Mortgage Solutions, LLC, a subsidiary of First American Financial Corporation (FAF) and provider of lender and servicer solutions that cover the entire loan spectrum, completed its integration with LoanLogics, a provider of loan quality management and performance analytics. The integration provides users of LoanLogics’ LoanHD platform with streamlined access to FraudGuard, First American’s data-driven decision-support tool that helps lenders comply with regulations, improve the speed and efficiency of application reviews, and increase loan quality.

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The LoanHD platform, LoanLogics’ flagship loan quality management technology, offers real-time loan quality reporting and best practice audit workflows. From within the LoanHD platform, users can now order FraudGuard services directly from the AppQ Network vendor management portal, which provides lenders with easy access to an entire ecosystem of third-party services that create efficiency and reduce errors in the audit lifecycle.

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“LoanLogics is committed to ensuring our clients have the tools they need, when they need them,” said Craig Riddell, senior vice president and chief business officer for LoanLogics. “By continually expanding our LoanHD network with the addition of best-of-breed solutions like FraudGuard, we’re helping our clients drive toward zero defects, improve their loan manufacturing process and reduce cost, while increasing the efficiency of audit reviews through technology and automation.

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FraudGuard is First American’s comprehensive decision-support tool that helps lenders originate compliant, defect-free loans using a combination of superior data, pattern-matching analytics and industry experience garnered from over 28 million reviewed loans. The next-generation data validation tool draws on public, private and proprietary data sources to deliver analytics that help lenders mitigate risk and accelerate the loan application review process.

“FraudGuard’s unparalleled data assets make it a stand-out among loan quality management tools,” said Kevin Wall, president of First American Mortgage Solutions. “We’re pleased to bring LoanLogics users on-demand access to the critical data insights and automated decision-support services they need to originate high-quality loans with confidence.”

Progress In Lending
The Place For Thought Leaders And Visionaries

The Regulatory Risks Ahead

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Get ready, because 2017 will bring a lot of new regulatory challenges. You can be sure that regulatory risk continues to weigh heavily on lenders’ minds. So, are there any specific regulatory rules coming up in 2017 that lenders should be preparing for? How about enforcement action? What hot button items do lenders need to stay away from next year?

You bet, answers Wade Hamby, national director of sales and marketing, Stonehill Group. “The new 1003 and HMDA change is going to be big next year. Servicing remains in the spotlight and will continue to be. With respect to TRID, in the fulfillment area we are seeing that it takes more time to clear stips.”

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Hamby has more than 25 years of executive experience in mortgage lending, outsourcing and quality control. He oversees The StoneHill Group’s nationwide sales and marketing activities and is responsible for expanding use of the company’s solutions in the mortgage industry.

“Further, the new 1003 will impact how you capture data,” he continued. “Lenders have to have partners that are effective when it comes to cyber security. You have to do the penetration testing and meet those compliance needs. Too many vendors don’t provide those services. There’s a lot to prepare for.”

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So, how do lenders get prepared? Many are turning to technology. One can argue that technology plays a far more significant role in today’s enforcement driven market. With so many regulatory landmines, lenders use technology to stay out of trouble, protect profitability and be as efficient as possible. That being said, how have lenders’ technology strategies evolved in the year or two? Why? In your opinion, what are the elements of an effective technology strategy in today’s market? And what is the single biggest mistake lenders make regarding technology?

“Technology is critical,” pointed out Brian Fitzpatrick, president and CEO of LoanLogics, Inc. “We are missing the boat to what technology should be doing to drive down cost, though. Technology has to embed all the rules. Technology has to take all of those rules and guidelines and embed them within the system and deploy as close to the point-of-sale as possible. Technology has to be dynamic so it can be easily changed as the rules change.”

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Fitzpatrick oversees all operations of LoanLogics. Mr. Fitzpatrick has raised industry-wide awareness of how technology plays a key role in the production and measurement of loan quality and performance.

The regulatory landmines ahead are many. “There are a number of new obstacles things coming up,” added Fitzpatrick. “For example, the required use of trended credit data will be mandated. Comments are due to the CFPB for updates to TRID. The changes will be impactful. There will be new HMDA fields that need to be captured. In 2017 we’ll see the optional use of the new 1003, which will be mandatory in 2018. All of this speaks to the need for more dynamic technology.”

“In addition, we are expecting UCD in the second half of 2017,” added Kelli Yarbrough, vice president of Loan Retention, Roundpoint Mortgage Servicing Corporation. “We are expecting a lot of guidance. In general, lenders need to resist the urge to rush into things like non-QM. You need to be well trained and have your technology in place before you wade in.”

Yarbrough is responsible for all aspects of customer contact in the loan retention process for RoundPoint’s MSR portfolio. Ms. Yarbrough is a veteran of the mortgage industry with more than 16 years of experience leading both sales and operations teams in wholesale, retail, and direct-to-consumer channels.

“As much as lenders rely on technology, often times we are catching things too late,” she noted. “A key point to a successful technology strategy is system integration. If the systems aren’t able to speak with each other they won’t last. Everyone needs to remain nimble, but we can’t forget to invest in training programs for the front line. The LOs have to understand how to use the technology and comply with the rules. I think we expect too much from our technology.”

A wild card in all of this could be the outcome of the Presidential Election. “With the election coming up, we should look at larger issues like a lack of new affordable housing,” said Fitzpatrick. “Also, rates are going to go up. So, how does all of that impact the market? The news coverage needs to focus on these issues relative to our industry, as well.”

Regardless of what happens, the smart lender has their eye on the future. “Next year will be the year that we crack open all the data,” said Brian Koss, EVP of Mortgage Network. “If you are forced to collect new data at the same time you have to deal with a new application, that should be a good thing for the space to digest. It will be a good opportunity for the industry to rethink the entire process.”

Brian Koss has more than 25 years of mortgage banking experience and has personally generated more than $1 billion in home loans. Mr. Koss has trained hundreds of loan officers over this career, including many top producers. For ten years, he served as the host for “Mortgage Mondays” on the nationally syndicated “Money Matters” radio show.

“Lenders are typically founded by sales guys that pay little attention to detail and just buy technology off the shelf,” Koss said. “It’s like self medicating. You have this ache so you take this medicine, then this other thing hurts so you pick up some medicine for that, but you aren’t aware of how those medicines work together. Lenders will some times buy something because it sounds good, but you have to look at how that new technology impacts your process and other technologies. That decision making process has to end.”

All of this change is making it more and expensive to originate a loan. “Everyone is talking about how the front end is changing and being digitized, but the real issue is that we have to figure out how to bring the cost of complying down,” concluded Fitzpatrick. “Lenders will not be effective if they are always scared of compliance enforcement. A lot of the technology on the market today is old technology that has been around for 20 or 30 years. It’s like building a new modern house on top of old knob and tube wiring system. It doesn’t work. Technology has to evolve to help lenders meet the challenges of complying.”

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.

New Tool Automates Non-Delegated Underwriting

LoanLogics has released its Non-Delegated Underwriting Module, the featured enhancement to its LoanHD Investor Module for Correspondent Loan Acquisition. The Non-Delegated Underwriting Module adds the ability for the investor to underwrite loans on behalf of the seller to the automated loan delivery process already present within the Investor Module.

Non-delegated underwriting is frequently used to offset risk in correspondent transactions. Sellers may be reluctant to underwrite higher risk loans themselves and investors may prefer to underwrite loans with which the seller has less familiarity.

“LoanLogics Non-Delegated Underwriting Module automates the underwriting workflow for the investor. More than that, we have brought the same data and document validation currently available in loan quality audits to the underwriting process. This brings increased productivity, improved efficiency and enhanced quality control to underwriting, even before the pre-purchase audit.” said Matt Thoman, Product Manager for Origination Technologies. “Our team has applied automation, improved accuracy, and transparency for better underwriting on loans which need it the most.”

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The Non-Delegated Underwriting Module makes underwriting non-delegated loans a dynamic, automated process that eliminates the need to manually validate data by “stare and compare” methods. Instead, the underwriter has full access to the LoanHD Loan Quality audit technology that compares data and documents in an automated fashion to streamline the validation process and significantly reduce errors.

During an underwriting audit the underwriter validates data that was used to generate pricing for the loan. Within the LoanHD Investor Module, if underwriting results in pricing data changes, the embedded Eligibility Card™ allows the underwriter to quickly view how the changes alter the pricing and eligibility. This reduces the “back and forth” between Secondary Marketing and the underwriter. “When the underwriting process produces a material change in the borrower’s loan file, the investor will be able to alter the price of the loan automatically and return it to the seller, so the system always remains accurate and up to date in real time,” said Thoman.

In addition, auditors reviewing a loan file prior to purchase have immediate access to the entire underwriting audit. For instance, investors can click a link and review W2s, tax returns, and related documents along with the details of the decision the underwriter previously made.

“Most investors run pre-purchase audits and are blind to their own underwriter’s decision made only a few days prior. That’s a time consuming, risky approach,” said Thoman. “This enhancement ensures our customers realize both efficiency gains and risk reduction with automation, transparency and accuracy.”

Progress In Lending
The Place For Thought Leaders And Visionaries

Partnership Offers Portfolio Review Service for Credit Unions

MemberClose, a provider of a one-stop, bundled, home equity and mortgage-settlement solution to credit unions in the U.S. and LoanLogics, a technology to assist in loan quality management and performance analytics, have created an automated portfolio review service designed to meet the needs of credit unions. Here’s how it works:

The offering will enable users of MemberClose to acquire new loan management and assessment functionality that promises to further enhance the value of the MemberClose Home Equity and Mortgage Settlement software platform. A credit union can upload loans to LoanLogics’ LoanHD Loan Performance Management platform via a secure interface located on the MemberClose’s website. The LoanHD system will perform a sophisticated analysis of the loans, which is then delivered in easy to understand language through the MemberClose platform.

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MemberClose users will benefit from the ability to run portfolio reviews and assess the amount of potential risk inherent in the credit union’s home equity lending portfolio. In addition, this partnership will also provide discounts for credit unions that wish to further tap additional capabilities provided by LoanLogics through its LoanHD platform.

“I’m excited to be able to deliver this valuable tool through our partnership with LoanLogics,” said Bob Delaney, Chief Operating Officer of MemberClose. “This new service will enable a credit union to easily determine any change in the risk profile of its borrower as it relates to credit, property value or lien position. LoanLogics is the premier provider of loan analytic tools to lenders and the perfect company for us to partner with for this service.”

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“The aim of this partnership is to ensure that credit unions have the technology they need to serve their members and comply with regulations. In addition, it means that credit unions of any size have access to the same technology as the largest mortgage lenders and that levels the playing field,” said Brian K. Fitzpatrick, president and CEO of LoanLogics. “Increasingly, credit unions are recognizing that they need to proactively monitor their mortgage loan portfolios. LoanHD provides a cost effective, efficient technology that helps our clients stay compliant while reducing costs.”

In addition to life-of-loan performance management, analytics, monitoring and data refresh capabilities, LoanLogics also offers product eligibility and pricing, as well as a loan-quality management solution that automates and reduces the costs and risks associated with mortgage loan quality-assurance and quality-control audits.

Progress In Lending
The Place For Thought Leaders And Visionaries

Helping Lenders Comply With New FHA Guidelines

LoanLogics, a recognized technology leader in loan quality management and performance analytics, has created a free interactive, online mortgage industry resource for lenders that have to comply with dozens of updated Federal Housing Administration lending guidelines. “Take the Mystery Out of the Requirements Being Superseded by the FHA Handbook 4000.1. The Decoder Is No Longer Secret,” offers FHA-approved mortgagees an easy-to-use, quick-reference tool that identifies the major substantive changes that took effect September 14, 2015.

This online tool helps lenders understand the major changes being implemented with the new FHA Handbook so they can incorporate them into their processes, policies and procedures. These changes were outlined in the Housing and Urban Development’s “4000.1: FHA Single Family Housing Policy Handbook: Doing Business with FHA, Origination through Post-Closing/Endorsement, Servicing and Loss Mitigation, and Quality Control, Oversight and Compliance.”

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“Over the past several months, I’ve worked with several lenders and participated in numerous FHA webinars and conference calls to identify the main requirements being superseded by the FHA Handbook 4000.1,” said Gerry Glavey, SVP and Chief Credit Officer at LoanLogics and author of the guide. “I recognized that it would be helpful for lenders to have a quick reference, interactive tool they could consult to answer a question, verify an important detail, or ensure they have not missed some of the more significant changes within the handbook.”

The purpose of the LoanLogics FHA Handbook 4000.1 online tool was to ensure that lenders had somewhere to go to answer their questions in a straightforward manner and have the information they need to understand how to comply with the new requirements. Also, it’s a resource that they can continue to reference now that the changes are in effect. Feedback from Lenders has been very positive as they have begun to share the online tool with staff as a “go-to” reference tool.

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“Without question, lenders face an uphill battle getting their staff trained on the new handbook as well as understanding the new procedures, but this reference tool will shorten the learning curve and improve their ability to achieve compliance,” said Glavey, who worked for HUD/FHA for more than 30 years. Most recently, he served as the Director of the Processing and Underwriting Division in the Philadelphia HOC from 2000 to 2011.

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.

Advancing TRID Education

LoanLogics understands that meeting the deadline for the TILA-RESPA Integrated Disclosures (TRID) requires a lender’s technology, document providers and staff to be prepared, according to their quick reference compliance guide, “Are You TRID Ready?” The deadline to comply with TRID is August 1, 2015. Here’s their solution:

“In my work consulting with lenders on the challenges of complying with TRID, I came to the conclusion that a quick reference guide and interactive online tools would help them and their staff better understand the new disclosure requirements. Anything that can help individuals get up to speed more quickly will benefit them, as well as the entire mortgage industry,” said Mike Vitali, the SVP/Chief Compliance Officer at LoanLogics and author of the guide.

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The purpose of the TRID guide is to provide a useful lender resource that is easy to follow and helps relieve some of the pressure they are feeling regarding getting prepared. That is critical; because of how pervasively this impacts a lender’s operations and the challenge of meeting the deadline and staying compliant once the rule goes live. Additionally, this guide may be downloaded and distributed to staff as a handy quick reference tool for day-to-day reference when needed.

“We’ve provided this reference guide, as well as online interactive tools, that will address many of the concerns Lenders face in preparing their staff to comply with these new rules,” said Vitali.

Tracking versions of the new disclosures, as well as timing definitions, is a role for technology. Lenders can’t rely on humans to get this correct. Open infrastructure technology with active alerting and dynamic workflow driven by rules will become the standard.

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This also becomes one more reason for pre-close audit reviews to enable tighter control of data and details. Even as loans are boarded to servicing, it will no longer be satisfactory to merely check for the presence of documents. Instead, systems must also check for correctness and track versions.

Some of the topics covered in the guide and the interactive website include:

>> A detailed explanation of both the new Loan Estimate and Closing Disclosure forms.

>> Interactive tools with line-by-line references for how to complete the new disclosure forms.

>> A sample TRID disclosure calendar.

>> LoanLogics newsletter articles with perspectives on TRID compliance and questions lenders need to consider regarding their TRID readiness.

To interact with this free on-line resource, go to Loanlogics.com/TRID.

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.

A New Twist

Here’s a new twist on verifying signatures: LoanLogics has enhanced its LoanHD platform with a fully automated signature clipping tool, called SignaFacts, that provides visual validation of execution and easy comparison of signatures. The types of documents evaluated by this tool include, but are not limited to, the good faith estimate, truth in lending disclosure, mortgage note, deed of trust and HUD endorsement.

“Because of this enhancement, the actual signatures can be audited, and when there are dissimilar signatures, it will be readily apparent. Until now, underwriters and auditors did not have a reliable method to quickly and easily inspect signatures side-by-side, which presented quality control issues for mortgage lenders,” said Craig Riddell, Sr. Vice President and Chief Business Officer for LoanLogics. “This innovation in a pre-close audit helps identify potentially fraudulent signatures before the loan is closed, and in the process, protects borrowers and lenders. Additionally, we have spent considerable time with industry leading Correspondent lenders who are confident that SignaFacts will be a very valuable feature in further reducing the costs of their pre-funding audits.”

It has always been difficult and time consuming to catch differences in signatures across the hundreds of pages contained in loan file documents that often arrive at the lender’s offices at different times. To complicate matters, the number of loan documents in a file has increased dramatically and staffs are stretched as their audit checklists have grown exponentially in the wake of new regulations and heightened investor scrutiny. Not only are individual documents assessed but results compile into defect reports to help identify which employees and documents are most often involved.

“File size and resource issues have made it more challenging than ever to detect signature fraud, while regulatory penalties and reputational damage make it a necessity,” said Riddell. “Lenders can now take steps to protect themselves using an interactive tool to confirm execution and view a side-by-side comparison of signatures. That’s what SignaFacts provides to clients—helping them guard against being the unwitting victim of fraud and quickly identify patterns and root causes of signature anomalies.”

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.