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HUD eliminates settlement option for mortgagees who fail to renew FHA approval

National Mortgage Professional
Jan 12, 2009

Cogent Road adds compliance features to Business Spaces for mortgage industryMortgagePress.comCogent Road, Business Spaces, ECOA, TILA Cogent Road, a provider of Internet-based applications for the mortgage industry, announced it has added new compliance capabilities to Business Spaces, the company's new intelligent document management system for loan officers, that automatically ensure full conformity with Equal Credit Opportunity Act's Regulation B and Truth in Lending Acts Regulation Z. Created to carefully monitor and track a loan's status coupled with the speed of the process cycle dictated by Reg B, Cogent Road's Business Spaces automatically delivers adverse action letters (either electronically using all federal and state disclosure requirements or via first-class mail) and creates an audit trail for compliance officers when loans are manually declined within the lender's loan origination system (LOS). Additionally, in accordance with Reg B, a loan file must be decisioned within 30 days of the application whether complete or incomplete. To enforce compliance here, Business Spaces carefully tracks the loan process to determine whether the loan has been committed by underwriting within Reg Bs allotted 30-day window. If not, Business Spaces automatically updates the LOS file and sends out the necessary adverse action letter. To provide full compliance with Reg Z, which requires that loan disclosures are delivered to the applicant within three days of taking the completed application, Business Spaces enforces this timely requirement for the loan officer after initial application is received. If disclosures are not sent within the necessary three days, the file is automatically considered to be in adverse action; the LOS file gets updated and a letter is sent out. Business Spaces also offers the loan officer a "last chance" warning beforehand of any potentially adverse action cases to help them move the loan forward and effortlessly remain in compliance. In addition to enforcing and tracking compliance, Business Spaces is an intelligent document management platform that can deliver and receive fully indexed documents, track their status and even notify key workgroups of issues that may delay closing. It offers one-click order and delivery of state-specific disclosures with full e-signature capability. Should the loan applicant decline the e-signature option or fail to review necessary documentation within a predetermined amount of time, bar coded hardcopies are automatically delivered for ink signing. The signed documents can be automatically uploaded via fax or mailed back to the lender and scanned into the borrower's Business Space. "Business Spaces monitor a loan's status as it passes through lender-specific underwriting milestones. Combined with its ability to securely deliver confidential documents without using e-mail, it ensures lenders are always in full compliance with FACTA, Reg B and Reg Z," said William DiPaolo, managing partner of Cogent Road. "The system helps manage the document workflow and takes over much of the responsibility for monitoring compliance status of the entire loan pipeline." For more information, visit
Jan 12, 2009
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