Mortgage Cadence to spin off document prep division
Technology provider Mortgage Cadence will spin off its compliance, content and documentation division into a separate entity, the firm said Monday. The division will be known as Finale Document Services. It will allow lenders to create disclosures, closing and loan modification packages, and short sale documents then send these materials directly to the borrower or a settlement agent. The company said the tool was originally part of the larger Enterprise Lending Solutions package, but it found a larger market as a standalone system. "We’ve been in the compliance, content, document creation and management business since 1999 and have invested tens of millions of dollars into this product line and the seasoned team that supports it," said Michael Detwiler, CEO of Mortgage Cadence. "I pushed my team to develop an industry-leading document preparation and delivery solution powered by our proprietary rules engine because we could no longer stand idly while the industry continued to be underserved." Finale does not maintain a forms library. Instead, it assesses the data from a system of record whether it belongs to Fannie Mae, Freddie Mac, the Federal Housing Administration, and then creates the appropriate documentation. Detwiler stressed the need for lenders to tighten compliance and said the system can be used to hedge risk from buyback requests should a loan go bad. "We have a team of attorneys and compliance professionals ensuring our clients will be protected. The days of having an originator click boxes to determine what docs get included are over. The risk is simply too high," Detwiler said. "Buyback requests for document-related issues are not as common now, but make no mistake, they will be." Write to Jon Prior. Follow him on Twitter @JonAPrior.