Lender Processing Services (LPS) released a new quality control product designed to reduce loan repurchase requests. The Loan Quality Gateway connects vendors and lenders and runs internal quality control on all data transferred between the two. For example, a lender can order an appraisal from a local or national company through the LQ Gateway and have the system evaluate the validity of the data. “Today there are existing interfaces for over 15,000 title, appraisal and mortgage insurance companies,” said Andy Higginbotham, executive director of the LPS Loan Quality Initiative. “LQ Gateway is really an industry tool to link the players together.” LQ Gateway obtains a series of components to store, share and compare data, as well as check for data compliance with federal regulations such as Fannie Mae or Freddie Mac‘s Uniform Collateral Data Portal, which opened for registration Tuesday and becomes active June 27. As an open network, the LQ Gateway can connect to any vendor business management platform and is open to all investors. The system was built and is run by RealEC Technologies, a wholly owned subsidiary of LPS. Dan Sogorka, president of RealEC, said adding a loan quality initiative that occurs before a loan is funded will reduce repurchase requests and produce higher quality mortgages. “Underwriting high-quality mortgage loans that meet the unique requirements of each investor and comply with all regulatory provisions is essential to the recovery of the housing market and to ensuring that homeowners obtain mortgage loans that are a good fit for their circumstances,” Sogorka said. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.

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