A LOANLOGICS WHITE PAPER
The game has changed.
Play different.
loanlogics.com
A LOANLOGICS WHITE PAPER
The game has changed.
Play different
The game has changed.
Play different.
Improving the transparency, accuracy and quality of consumer loan commerce and
protecting the interests of originators, servicers, insurers and investors who have
accountability and liability related to these assets is one of the most significant issues
in the mortgage industry. As the mortgage game is changing, lenders must play different.
Compliance readiness is here and now and can’t be frozen waiting for the actions of
the CFPB.
Regulatory changes that include Ability-to-Repay/QM, mortgage servicing rules, and
Fair Lending to name a few, are creating demands for new data, forms and reports
within the stages of the life of the loan. Investor requirements for monitoring loan quality
throughout the origination process are becoming more intense and repurchase risk
has not necessarily been alleviated with the new FHFA reps and warrants framework.
Compliance with inter-Agency guidance on allowance for loan loss reserves and
meeting ongoing MERS® quality assurance standards and annual reporting requirements
are driving the need to improve the quality of loan data over the lifecycle. Information
must be validated, verified and audited through the life of the loan not just in the LOS
and Servicing Systems but also in the core loan documents that make up the transaction.
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loanlogics.com
A LOANLOGICS WHITE PAPER
The game has changed.
Play different
To avoid the potential of increased repurchase risk and non-compliance fines and
penalties, lenders will need to harness their data at the enterprise level. It’s not just a
matter of improving what data is captured in your LOS and Servicing point solutions,
but of ensuring the quality of that data over time and supporting access to that
information beyond the silos of each functional area. The industry has changed
and the narrow offerings of today’s technologies are only addressing limited
aspects of lending risk. That is why more lenders are looking for an enterprise
level solution that can provide independent compliance oversight, improve data
quality and leverage-ability and reduce the overall cost and complexity of loan
quality and performance management.
Consider the implications of quality and performance management through the
entire loan life-cycle. Essentially, reform has taken underwriting and codified it
into law, with big repercussions if you get it wrong! Beyond the initial loan pricing,
pre-underwriting and pre-closing stage, data validity and visibility during the sale or
servicing of loans is also under increasing investor scrutiny and CFPB regulations.
Lenders, investors, servicers and counterparties are all focused on process integrity
and data quality. The single source of truth, which may begin in the loan documents,
must be carried through all workflow applications and accessed via a centralized
database thus removing the barriers to smarter decision-making across the
enterprise. The LOS and Servicing Systems can no longer be unilaterally trusted
as containing accurate data - without validating and auditing the data Lenders
run the risk of significant exposure.
Gaining the advantages of a seamless solution that is independent from core
production systems, reduces risk and formally tracks and reports on loan quality
and performance metrics at various stages of the life of the loan can provide
greater stability and strength to the mortgage industry. This new type of technology
solution is timely as 2013 is shaping up to be a pivotal year that will change how
loans are originated, serviced and marketed. Under the new regulatory scheme,
lenders adopting technology and services should seek out providers who have
dedicated the necessary resources to compliance and risk expertise to implement
these new types of solutions.
The industry has changed and
the narrow offerings of today’s
technologies are only addressing
limited aspects of lending risk.
Visit loanlogics.com to learn more about technology solutions for today’s mortgage
and consumer lender.
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loanlogics.com
A LOANLOGICS WHITE PAPER
The game has changed.
Play different
About LoanLogics
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© 2016 LoanLogics, Inc. All Rights Reserved.
LoanLogics was founded to improve the transparency and accuracy of the
mortgage process and improve the quality of loans. With the industry’s first
Enterprise Loan Quality and Performance Analytics Platform we serve the needs
of residential mortgage lenders, servicers, insurers, and investors that want to
improve loan quality, performance and reliability throughout the loan lifecycle.
Our advanced solutions help clients validate compliance, improve profitability,
and manage risk during the manufacture, sale and servicing of loan assets.
Our technology is supported by compliance and risk expertise that aligns with
our customers’ need to address their own highly regulated environments.
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