Mavent reacts quickly to the immediate enactment of Kentucky House Bill 552 MortgagePress.comAutomated compliance, prepayment penalty, compliance systems
Automated compliance company ensures its clients are
compliant after bill is enacted
Mavent Inc. has updated its
automated compliance engine to reflect the immediate addition of
new high-cost thresholds and other fee and prepayment penalty
restrictions promulgated by the Kentucky General Assembly.
Unlike most legislation, which typically provides a three- to
six-month window between enactment and effective date, HR 552 is
immediately effective upon the signature of Kentucky's Gov. Steve
Beshear. Those institutions that do not maintain a dedicated,
cross-functional team responsible for maintaining their compliance
systems risk funding loans that do not comply with HR 552.
Non-compliant loans can result in substantial regulatory fines that
materially impact secondary market sales.
"This is an example of Mavent's value. Especially in this
environment, most lenders cannot marshal all the moving parts
needed to keep their systems current with abrupt regulatory
changes," said Louis Pizante, CEO of Mavent. "While Mavent's
clients are funding Kentucky loans today, many other lenders are
debating whether to suspend their business or risk making
non-compliant loans."
HR 552 is all the more challenging to lenders because of its
timing, the last Thursday of the month. The final week and last
Friday of each month are especially busy for lenders because this
is when most loans are scheduled to fund.
Mavent's automated compliance engine reviews mortgage loans in
less than five seconds for compliance with more than 300 federal,
state and local consumer protection laws, including predatory
lending laws, usury, fee limits, prepayment penalty restrictions,
licensing verification and fair lending requirements. Mavent
continuously identifies and monitors new and pending regulation
that impact mortgage lending. Pending legislation is reviewed by
Mavent's in-house legal team and its network of nationally
recognized consumer credit law firms. Mavent is able to implement
changes and notify clients in advance to respond to sudden
regulatory changes.
Mavent ensures that its clients do not fund or purchase loans
that violate consumer protection and other mortgage-related laws,
enabling institutions to focus on growing production
profitability.
For more information, visit www.mavent.com.
