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CoreLogic offers a broad array of solutions to help servicers streamline workflows at any point in the servicing process. The company’s combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 years.
This wealth of data, which provides detailed coverage of property, mortgages, consumer credit, tenancy, location, hazard risk and related performance information, allows CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk for its clients.
“We understand that when it comes to managing risk, you are only as good as the vendor you choose,” said Arlene Hyde, senior vice president of compliance and management solutions at CoreLogic. “That’s why so many of the nation’s top mortgage lenders choose us. They trust that our infrastructure, regulatory expertise, and data quality will help them successfully grow their businesses while effectively managing and mitigating risk.”
Mitigating risk is at the heart of recent enhancements by CoreLogic to its Lien Release solution, which addresses the legal and compliance challenges inherent in the lien release process. By one count of all the county, state, CFPB and investor requirements related to lien releases, there are more than 1 million unique requirements to track, manage, maintain and adhere to nationwide.
Many servicers still rely on in-house staff to manually process and record lien releases, requiring staff to track and monitor information from hundreds, even thousands, of sources to maintain templates to conform to all the varying recording requirements across the country.
“It is unrealistic to think that these processes can be done manually, timely, and produce the correct results 100% of the time. In fact, errors occur all too frequently, resulting in higher error rates, increased rejections and lower compliance ratings — all potentially serious issues in a zero-tolerance regulatory environment,” Hyde said.
The Lien Release solution from CoreLogic leverages compliance expertise and attorney relationships nationwide, incorporating automated compliance software to track, monitor and store compliance data and forms. Clients who use the company’s Lien Release solution can reduce costs, minimize errors, provide an audit trail and enhance transparency.
“We’re giving servicers a way to track and manage vendors and prove compliance in one comprehensive database,” Hyde said.
Of all the potential compliance issues involved with lien releases, the most serious is the Unauthorized Practice of Law (UPL). What constitutes UPL is often a moving target and one that can change depending on what state a lender is doing business in. And the range of penalties can include injunction, civil contempt citation and cease and desist order.
But UPL isn’t the only pitfall that servicers must be aware of. A number of consumer complaints, claims for UPL or consistently high error rates might be considered a pattern of unfair practices that are likely to cause substantial injury to consumers, which could trigger enforcement actions by the Consumer Financial Protection Bureau.
“Being a service provider to the industry, CoreLogic is held to the same regulatory and compliance standards as our clients,” Hyde said. “We understand that in the current regulatory environment, maintaining compliance requires significant and ongoing investments in systems, processes, people, and data.”
CoreLogic technology allows for integration between platforms so the data can be bi-directional, with loan-level information going back and forth between lien release software and the servicing system. It also offers the ability to systematically enforce key business policies and procedures.
“Compliance, errors, rejects and reworks are expensive, so having the right software as well as the right partners will be critical,” Hyde said. “And because of our established partnerships, you won’t need multiple vendors.”
“We’ve positioned ourselves to be ready for the future and for the changes that are coming. Compliance and regulatory issues are only going to increase, so providing a lien release solution that will satisfy all layers of current and future requirements will be paramount.”
Arlene Hyde is senior vice president at CoreLogic, responsible for coordinating its sales and business operations to design customer development strategies and provide solutions to the company’s largest clients.
Prior to CoreLogic, Hyde was the founder and president of Hyde House Group, a financial services consulting company, and has held several executive positions managing different business lines for JP Morgan Chase, CitiMortgage, Mellon Mortgage and Washington Mutual. She has more than 30 years of experience in the mortgage lending industry.