Gallagher Financial Systems, Inc. and Mavent Inc. said Tuesday that both companies have formed a strategic alliance to integrate the Mavent Expert System, an automated compliance solution, with NetOxygen, Gallagher's LOS. The companies said in a joint statement that their combined services aim to provide NetOxygen customers with a real-time, interactive compliance solution that accelerates production while enhancing quality. Prior to funding, lenders can review every loan in their production pipeline for compliance with applicable federal, state and local lending laws, as well as custom institutionally-mandated compliance policies. In discussing their approach to compliance intregration, both GFS and Mavent said that a compliance review is integrated directly into NetOxygen's workflow processes, and does not rely on batch file imports or a partial interface.
Instead, Mavent collects and processes electronic loan data received through NetOxygen. Data is then run against the Mavent rules as defined by the clients' legally permissible options, and returned through the NetOxygen interface for consistent application and accurate reviews. If exceptions are found, stops can be put in place to prevent funding non-compliant loans until the user takes corrective action; if no exceptions are found, the end-user never needs to know the review has been processed. Both companies say this streamlined review process results in highly customizable compliance services that support, complement and leverage a financial institution's internal compliance resources without burdening production. Any modifications required to make the loan compliant can be made in NetOxygen, so all data remains in a single system of record. GFS is one of the nation's largest residential loan origination system providers. Its NetOxygen system allows lenders to easily create a business rules knowledge base that provides automated calculations and auditing capabilities throughout the life of the loan. Each loan is monitored from the beginning so that the quality control process is in place from the moment the loan is created. Since NetOxygen is a fully Web-enabled origination system, users can then check status of their loans at any time or any place via the Internet. This allows for a near paperless production environment that is online, real time, and not dependent on “brick and mortar� locations. Mavent has performed more than 15 million compliance reviews for many of the industry's leading financial institutions, including three of the top five originators and Fannie Mae. The Mavent Expert System reviews loans for compliance against nearly 300 legislative acts, 200 license types, and the rules and regulations of over 60 regulatory authorities, and includes aspects of Truth-In-Lending Act (TILA), HOEPA, state and local high cost calculations, general state consumer credit laws, broker and lender licensing, an accurate Fannie Mae points and fees test, HMDA and OFAC. “The combination of NetOxygen's powerful rules engine in conjunction with the Mavent Expert System provides the lender a comprehensive residential mortgage solution that mitigates a multitude of risks due to quality audits which are often left to manual processes today,� said Chris Anderson, president of Gallagher Financial Systems. “This provides a win-win situation in all respects, especially for the lending community who now has the ability to control the quality of their product and increase franchise value.� “Gallagher's NetOxygen is driving the major productivity advance in a mortgage industry competing on the basis of speed, pull-through and increasingly global operations,� said Louis Pizante, Mavent's CEO. “Our service centralizes and accelerates compliance risk management, reducing origination costs and repurchase risk. NetOxygen clients will easily translate this combined service into competitive advantage while enhancing their reputations as responsible lenders.� For more information, visit or