MRG Launches TILA Test Software

Dallas-based mortgage software developer MRG Document Technologies (MRG) released a new product for lenders to test whether the loans they are selling to consumers meet upcoming federal requirements. The software provides compliance tests to show whether higher priced mortgages — loans with annual percentage rates (APR) above the average prime offer rate for a comparable transaction by at least 1.5% for first mortgages or 3.5% for second mortgages — meets standards set by the Truth in Lending Act’s (TILA) Regulation Z that prohibit lenders from extending credit without regard to a borrower’s ability to repay the loan from sources other than the collateral itself. The new regulations take effect Oct. 1. “Since the average prime rate changes on a weekly basis, this is a process that needs continuous attention and maintenance to remain accurate,” said MRG director of customer service Laura LaRaia. “If lenders are unable to tackle the issue by themselves, third-party technology providers such as MRG can help them maintain compliance,” she added. Write to Austin Kilgore.

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