DocMagic, provider of compliant loan document preparation compliance, eSign and eDelivery solutions, announced its new solution that will eliminate TILA/RESPA Integrated Disclosure audits and violations concerns.
The solution, eQC, provides a complete closed loan MISMO 3.3/UCD XML data file, an automated compliance report and a detailed audit trail with a document integrity certification which certifies that the XML data provided and documents match prior to investor delivery.
It includes an electronic record of compliance that gives investors and correspondent lenders a detailed audit trail. This trail eliminates concerns over future TRID audits and violations.
In a recent report on the impact on TRID on residential mortgage-backed securities, Moody’s Investors Service analysts write that several third-party firms have reviewed a number of recent mortgage loans for TRID compliance and found violations in more than 90% of the loans.
“The CFPB requires all parties involved in the mortgage finance transaction to demonstrate evidence of TRID compliance,” DocMagic Director of eServices Tim Anderson said. “Our new eQC solution gives investors and correspondent lenders warranted electronic evidence of compliance with TRID and other critical regulations, and ensures that the audited data is exactly the same data that appears on the documents disclosed to the borrower. This is really the holy grail of automated due diligence compliance.”
In addition, the new tool provides compliance data on federal regulations such as high cost, QM, ATR and even some state regulations. DocMagic’s audit engine determines if a condition is out of compliance. From there it will flag the causes of the issue for the user, and direct them to a link that shows where and how to fix it. It will then verify that the error was corrected.
DocMagic’s eQC uses all of this to create a full data and time stamped audit trail. The app also adds a date and time stamp to all borrower disclosures, which can be found in the audit trail along with a full record of the compliance checks and conditions performed on the loan and the MISMO 3.3/UCD XML data file.
“With over 8,000 originators running millions of closed loans through DocMagic’s compliance portal each year, eQC leverages the long-standing industry acceptance of our compliance solutions to bring our correspondent lenders and investors true automated proof of compliance,” DocMagic President and CEO Dominic Iannitti said.