For servicers and subservicers, compliance with federal and state regulations is a top priority, especially given today’s record high loan volumes driven by historically low rates. It’s critical to quickly evaluate the success rate of a loan by identifying and correcting errors in real time.
ServiceMac is an innovative mortgage subservicing company that offers each of its clients exclusive access to its proprietary compliance solution. ServiceMac’s Control Tower is comprised of more than 1,200 rules that capture federal, agency and CFPB regulations. Each night, the system runs every rule against every loan in a client’s portfolio. The results help identify loans that have failed or could potentially fail.
Control Tower then feeds those results into an end-user workflow application that captures the rule, the data used to evaluate the rule, and the result that needs review. Each rule is mapped to a department queue and worked daily, and the evaluation results provide a feedback loop to minimize potential defects going forward. The goal is to support a client’s compliance or audit teams by identifying and reducing errors.
As part of the standard reporting package, Control Tower provides a series of “mock audits” based on federal, agency and CFPB regulations. This allows lenders to clearly see ServiceMac’s operational results and have confidence that all federal, agency and CFPB guidelines are met for every single loan.
“I don’t think there is another system that solves these compliance challenges with this much transparency and efficiency,” said Bob Caruso, CEO of ServiceMac. “Control Tower is unique in the industry in that it has more than 1,200 rules and runs daily against a servicer’s entire portfolio. This continual, comprehensive review allows lenders to increase their capacity and manage spikes in demand, while effortlessly maintaining compliance with regulations.”
By continually auditing its portfolio and processes, Control Tower is able to meet and exceed regulatory compliance standards for all ServiceMac clients. This type of modern lending technology is built to scale and offers distinctive advantages by tracking, analyzing and ensuring decisions are consistent.
“Control Tower is built and managed by a leadership team with 20-plus years of experience across both mortgage and servicing compliance and technology,” Caruso said.
Robert J Caruso, President/CEO
Bob Caruso is a veteran of the mortgage servicing industry with more than 20 years holding senior-level positions at ServiceLink, Wells Fargo, Chase and Bank of America.