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1350 Bayshore Hwy
Burlinghame, CA 94010-1823

Market view

The compliance challenges of 2015 will have a profound effect on lenders. This year, lenders had to contend with the Qualified Mortgage (QM) and Ability to Repay rules, while in 2015 lenders will have to change their processes to accommodate both the new TILA-RESPA Integrated Disclosure (TRID) rule and the final rule for the Home Mortgage Disclosure Act (HMDA), expected in mid-2015.

Both of the new rules for 2015 are potential business disruptors. 

Lenders with paper-based processes face a daunting task to comply with the tighter loan estimate delivery thresholds of TRID and the increased reporting required by HMDA. 

Lenders of all sizes are investing time and money in automated compliance solutions to manage the increased workload.

Successful implementation of the TRID changes will not be the result of a single party’s effort, but will require a collaborative effort between lenders, vendors and settlement agents to coordinate the necessary system-to-system communication. If a lender uses more than one vendor, this challenge will be multiplied.

Automated integration

To address the industry challenge of working with multiple, disparate vendors, ComplianceEase offers a suite of automated compliance solutions that are seamlessly integrated with more than 30 major loan origination and document preparation systems.

With ComplianceEase, the electronic version of clients’ loan information is audited and vetted throughout the origination lifecycle by many different parties, from brokers, lenders and investors to aggregators and regulators. These high-frequency, multi-step controls reduce the loss of data integrity, safeguarding lenders.

“As an automated regulatory compliance provider, our technology has to follow the law,” said ComplianceEase Senior Vice President Jason Roth. “We previously built solutions to address and test for the emerging regulations as part of TILA and RESPA. As regulators introduce new or updated legislation, we must change along with them.

“Now, because a high volume of data will be exchanged as part of TRID, other technology partners need to be able to communicate with one another, delivering and consuming electronic versions of a wide range of loan information,” Roth said.

HMDA reporting regulation is another potential hurdle for lenders, as accuracy in collecting and reporting borrower information becomes paramount.

“The industry is heavily focused on TRID, and rightly so. However, HMDA changes are also on the horizon,” Roth said.

“The CFPB comment period for new HMDA regulations just ended, which means that the Bureau will be enacting these changes, anticipated to be massive, in 2015.

“We’ll be updating and enhancing our HMDA reporting and analysis solution, HMDA Analyzer, to help the industry comply with these changes,” he said.

The company’s HMDA Analyzer solution collects, analyzes, and edits data in real time, automatically locating and correcting errors.

 It generates dynamic reports, charts and geographic maps so that lenders can continuously evaluate their performance, running the same types of reports used by regulators.

“Regulatory compliance automation is our sole focus. That is the difference between our suite of solutions and those of other technology vendors. Not all regulatory compliance engines are created equal. 

“We built our system from the ground up so that we have full control over all of the details,” Roth said. 

“For example, we built our own complete Truth-in-Lending and APR calculation system more than a decade ago, rather than opting to utilize a third-party provider.”

ComplianceEase is committed to helping its clients stay compliant in the face of increasing regulation with automated web-based compliance management solutions.

“We are forecasting a bullish outlook for the coming years due to the strong need for efficient origination in the wake of new regulations and slim margins. 

“We will continue to remain ahead of the regulatory curve in order to safeguard and serve our clients,” he said.