Comergence Compliance Monitoring launches TPO management and compliance monitoring service to help thwart broker-assisted fraudMortgagePress.comComergence Compliance Monitoring LLC, TPO management, fraud, compliance
Orange, Calif.-based Comergence Compliance Monitoring LLC
provides wholesale lenders a first-in-industry, outsource solution
for third party originator due diligence and license compliance
monitoring. Greg Schroeder, president, stated, "Most of the
Mortgage Brokers in the industry are solid performers with strong
credentials. However, industry studies show that for any given
lender, 9-12 percent of their brokers are responsible for nearly
100 percent of their loan fraud. It is this group of bad actors
that we help lenders weed out, and keep out, of their business. The
key to our model is that we enable lenders to identify these risky
brokers before they start submitting files--not after the damage is
done."
On the front end, an integral part of the Comergence solution is
a robust background check of brokers as they apply to do business
with a lender. That check includes license status and derogatory
review, the National Fraud Protection Database (NFPD),
lenders/industry sanctions, Social Security Number verification for
principals, and much more. What is uniquely different about the
Comergence service is that they conduct an on-site inspection and
obtain notarized signatures on all lender documents and
agreements.
As a further deterrent to fraudulent submissions, Comergence
takes broker compliance monitoring beyond basic license status
verification to a new level of risk mitigation. Through the use of
sophisticated predictive pattern analytics, Comergence proactively
alerts lenders to brokers who have the potential for submitting
loans associated with high fraud and default rates. By anticipating
problems before they happen, lenders can implement various
strategies to preempt fraudulent submissions. This powerful service
also enables lenders to check for fraud and early payment defaults
at the point of loan submission to reduce the chance of having to
repurchase a bad loan.
As a true outsource solution, Comergence Compliance Monitoring
effective consolidates a redundant function among lenders and
consequently is able to offer considerable cost savings over a
lender's internal broker due diligence and monitoring departments.
Lenders have reported 25--40 percent reduction in direct costs
while acknowledging the significant additional savings associated
with reduction in fraudulent submissions. Comergence also
indemnifies lenders against any state fines or penalties that may
result from doing business with monitored brokers whose license has
expired or suspended.
For more information, visit www.comergence.com.
