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The housing industry is going to see more compliance rules that will be introduced or changed in 2015. While the CFPB initially focused mostly on originators, it has recently also started to take a closer look at services, which will have a significant impact on the servicing side of the mortgage business throughout 2015.
As it relates to the appraisal space, the big question is how ready vendors are to tackle compliance while still being able to innovate and roll out new or enhanced solutions. For many vendors, the past couple of years have unfortunately stifled innovation because their time and resources got tied up chasing compliance initiatives.
Lenders are going to need compliance technology baked into all of their mortgage applications so users are locked down and there is transparency throughout the entire lending and compliance process.
Monitoring and reporting will also be pivotal for all aspects of the lending process in order to document that the right steps have been taken in the event of an audit.
One major challenge that both vendors and lenders should already be preparing for is the new Uniform Closing Dataset (UCD) to support the CFPB’s Closing Disclosure, which will replace the current HUD-1 Settlement Statement and go into effect on Aug.1, 2015.
Automating the appraisal process
Global DMS started back in 1999 with a vision that was ahead of its time. Before the crash, credit was the primary barometer by which to assess the risk of default. However, investors were leaving out a critical element — how much a property is worth.
Global DMS embarked on a mission to produce quality loans that weren’t just based on the borrower’s credit, but also on the true value of the property. When the Home Valuation Code of Conduct (HVCC) was introduced in 2009 and additional compliance rules were subsequently required to underwrite and sell loans, Global DMS was in an outstanding position to help lending entities automate manual appraisal processes and in full compliance.
“That was a huge turning point for Global DMS as a company,” said Vladimir Bien-Aime, president and CEO of Global DMS.
Global DMS’ core solution, eTrac Enterprise, is a comprehensive, centralized valuation management platform that handles the entire appraisal process for lenders, AMCs, appraisers and other real estate entities.
eTrac automates key functions of the appraisal process starting with vendor vetting and management; accepting and processing of orders; assigning orders; tracking orders; reviewing orders; delivering appraisals to the UCDP; and finally selling fully compliant, accurate appraisals to the GSEs/investors.
In addition, eTrac has an accounting component to it that enables clients to manage accounts payables and receivables, complete with invoicing and credit card processing. Global DMS also provides detailed reporting that documents all steps taken during the appraisal process. The solution is 100% web-based and delivered on a software-as-a-service (SaaS) basis, so there are no installs or client hosting required.
“eTrac is proven to ensure compliance is met and enforces rules throughout the appraisal process from the point an order is assigned to the appraiser to when the loan is sold,” said Bien-Aime.
Because the eTrac system is all-in-one, there isn’t a need to involve other vendors in an effort to create a comprehensive solution. Global DMS was the first appraisal software provider to drive and standardize integrations with LOS vendors for the seamless exchange of data. And Global DMS has partnered with select data analytics providers, which enables it to deliver a highly accurate valuation of the property.
“For both lender and AMC clients, Global DMS’ eTrac platform is proven to lower costs, increase turn times, reduce risk, eliminate fraud, establish transparency, and remain fully compliant at all times,” Bien-Aime added.
In 2015, Global DMS will continue to develop strategic partnerships with value-add software providers that enhance its current platform. It will also launch a new platform that is now in development. “Change will be the only constant going forward. The team at Global DMS is always thinking of better ways to do things for customers, striving to always innovate,“ Bien-Aime said.