New automated service verifies APR and payment streams, while also applying compliance rules to reduce or alleviate regulatory errors during the prequalification process.
LAGUNA HILLS, Calif., November 12, 2020 – QuestSoft Corporation has added a digital compliance tool to its Compliance EAGLE platform that delivers critical compliance at a justified price point during the loan prequalification process.
LeadER is an easily customizable addition that allows lenders to quickly check all applicable State and Federal rate limits. It is based on the applicable index values to verify that a loan would not be “High-Cost” before providing a rate quote to a borrower. The tool also calculates and/or verifies APR and payment streams for multiple side-by-side quotes within the same review request. LeadER can create calculations for all types of loans (fixed, ARM, specific payment variations, etc.).
Many states have laws and statutes that stipulate a mortgage lender would be exposed to significant risk if they lend money at an interest rate in excess of a certain statutory variable threshold. LeadER is a valuable and nearly-instant check to help ensure lenders are compliant — something the Consumer Financial Protection Bureau (CFPB) has also prioritized through its Home Ownership and Equity Protection Act (HOEPA) revisions. This tool supports all lien positions, making it especially suitable for junior TD loans and HELOCs. LeadER can even be expanded for use in non-mortgage applications as needed.
“Since the limits are typically based on index values such as APOR or TCM, plus some margin based on the loan data, there is often more than one jurisdiction in effect for any loan application,” said Frank Tuttle, software architect for QuestSoft. “Banks, private mortgage lenders and credit unions who have multi-state originations must dedicate a level of effort in a cost-effective manner to make sure they are not originating loans that violate the High-Cost limit.”
“LeadER is a fantastic tool that helps a lender monitor lead pipelines daily to see potential red flags and fallouts,” said Leonard Ryan, president and founder of QuestSoft. “With this addition, now the entire pipeline — from leads, to sale on the secondary market — can be automatically managed by Compliance EAGLE, significantly reducing errors due to rate limit exposure and other mistakes.”
Current clients of the Compliance EAGLE platform can utilize LeadER under the “Additional Services” section of the program.
QuestSoft Corporation is the leading provider of comprehensive compliance software and services for the mortgage, bank and credit union industries. QuestSoft offers solutions for HMDA processing and reporting, CRA and fair lending compliance analytics, automated compliance reviews and software design expertise, enabling more than 2,500 customers to simplify and speed the collection, analysis and reporting of key lending data. For more information, call 800-575-4632, ext. 1, or visit www.questsoft.com
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