The Challenge of Compliance

The regulatory environment for today's mortgage lender has become exceedingly complex. Compliance is more difficult each day, as a cascade of new disclosure and lending requirements are imposed by federal, state and local regulators. With added regulation and enforcement it is becoming very difficult for mortgage lenders to gauge whether their internal compliance systems are functioning properly and whether the continuing cost, in both human and financial terms, of adopting and maintaining adequate regulatory controls can be sustained in a volatile origination market.

At the same time, the absolute risk of non-compliance has become intolerable. Audits by regulators and investors alike are now commonplace and fines, penalties, and loan repurchase demands are escalating. As tough new regulatory standards increase the scope and absolute number of loans that must be evaluated carefully for compliance, investors have become acutely aware that several regulatory changes impose liability on the purchaser of a mortgage loan for compliance errors made by its originator. It is no surprise that investors are increasingly demanding, prior to funding a loan purchase, that originators provide loan specific data in an electronic format complete enough to permit comprehensive automated compliance reviews on each loan to be purchased.

Lenders, in order to cope with these added regulatory compliance risks, are faced with an immediate and compelling need to re-evaluate, and upgrade, their internal systems capacity to recognize, incorporate, and respond to mandated regulatory changes.

Compliance Control with Doc Prep

MRG's Miracle Online Doc Prep systems represent a robust solution to the escalating demands of the regulatory environment.

'CompliancePlus' from MRG provides a fully integrated data and document compliance process, from initial disclosure through closing documentation. MRG has specialized, for more than 30 years, in creating current, authoritative mortgage origination documentation, nationwide. We are in the business of managing the integration of ever-shifting regulatory standards and their application in your origination process. Our team of lawyers and mortgage industry specialists design and maintain fully customized compliance for your lending environment by:

• Creating and managing the data flow, design and content for your disclosures, individual loan documents, and loan closing packages, warranting to you that the content and calculations involved in the resulting loans are accurate and fully compliant with all applicable legal and regulatory requirements.
• Constantly reviewing, and integrating into your disclosures and documents, all of the ever-changing regulatory requirements that impact the proper origination of your loan products.
• Providing fully-automated, seamless, real-time testing of the data in each loan to be closed to assure that your loan complies with all applicable anti-predatory lending and high-cost regulations. Printable reports of testing results are provided with the closing packages, adding a level of quickly reviewable assurance to warehouse lenders and investors.
• Automatically subjecting each loan to the scrutiny of a carefully designed Fraud Avoidance test provided by Kroll Factual Data. The test checks selected data about the borrower, the property, and the loan participants (title agents, appraiser, etc.) and results in a scored report that can be reviewed by your closer, in real-time, and prior to closing. Just as is the case with the high-cost test reports, these Fraud Avoidance reports can be supplied to warehouse lenders and investors prior to funding, or with the final closing package.
• Making available, at your option, an additional level of automated compliance testing by running the data about an individual loan through "ComplianceEase", an independent data testing service that evaluates overall regulatory compliance of mortgage loans, based on a recognized set of business rules designed to evaluate regulatory criteria. The "ComplianceEase" tests can be run in real-time, inside the document preparation process, and printable results are immediately available and can be forwarded to your warehouse lender and/or investor instantly.

CompliancePlus provides you with seamless access to the highest level of legally compliant document and package content, real time regulatory and investor updates automatically incorporated into the documentation, calculation verification, and seamless data integrations that allow instant independent third party testing of loan data for fraud control, risk management, and compliance certification.

Closing Documentation Systems as your 'single point of truth':

Most important, we provide you with data management and documentation systems that act as a "single point of truth" for compliance control. Every disclosure, calculation and document can be instantly audited, in an integrated data file, by your warehouse lenders and investors. Automated compliance reviews can be performed on every loan and each loan can be certified as meeting compliance standards that you, and your investor, have specified. This assures you that the loan will be funded and purchased quickly, and without risk of rejection.

'CompliancePlus' from MRG represents a highly sophisticated, cost effective, fully outsourced solution to the ever more complex job of keeping ahead of an unrelenting regulatory environment. We deliver functionality, efficiency and productivity in a smart, focused application. Let us customize an outcome driven strategy that fits your compliance requirement and frees you, and your staff, from the need to internally monitor, and mange, the constant regulatory evolution in the mortgage lending environment.