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BytePro 5.0 Upgrade Offers New Risk-Based Pricing Disclosure and Updated TIL

NationalMortgageProfessional.com
Dec 27, 2010

Byte Software, a provider of mortgage software for banks, credit unions, mortgage bankers and mortgage brokers announces the release of BytePro 5.0. Version 5.0 includes vital regulatory updates to keep Byte Software clients compliant and provides new back office functionality for selling loans on the secondary market. Beginning Jan. 1, 2011, originators are required to supply each borrower with a new Risk-Based Pricing disclosure as required by the Federal Reserve under the Fair and Accurate Credit Transactions Act (FACT Act). Like previous credit disclosures, the Risk-Based Pricing disclosure lists the borrower's credit score and the factors that influence the score. In addition, the new disclosure indicates how the borrower's credit score ranks in comparison to other consumers. This "score rank" can be in the form of a bar chart or a simple statement. For instance, for a borrower with a high credit score the disclosure may state" [your] credit score ranks higher than 86 percent of U.S. Consumers." Over the past two months Byte Software has worked diligently with the major credit reporting agencies to update its interfaces so that the "score rank" is imported from credit report files. The result is that BytePro version 5.0 can generate the Risk Based Pricing disclosure free of additional charge, and can display the score rank as either a bar chart or a statement. In a separate regulatory change, effective Jan. 30, 2011 originators are required to provide an updated Truth in Lending (TIL) disclosure as mandated by the Federal Reserve under the Mortgage Disclosure Improvement Act (MDIA). For adjustable-rate mortgages (ARMs), the updated TIL contains "worst case" information describing how high the borrower's monthly payment can rise if interest rates rise. The disclosure is also notable for disclosing the borrower's escrow payment and the fact that the borrower may not be able to refinance the loan in the future. BytePro version 5.0 contains the updated TIL disclosure, and allows originators to use either the new disclosure or the old disclosure in the interim period prior to Jan. 30, 2011. In addition to regulatory enhancements, the Enterprise version of BytePro 5.0 includes a host of new back office mortgage banking features that support underwriting, secondary marketing, closing, funding and shipping. It enables mortgage lenders to sell loans to investors via best efforts or mandatory delivery in the secondary market. New automation features also allow administrators to customize the software to meet their individual business needs. Joe Herb, Byte Software’s general manager said, “The recent regulatory changes contained in BytePro 5.0 are just the beginning of an expected wave of changes. The Dodd-Frank Consumer Protection Act in particular is expected to trigger an avalanche of new mortgage regulations over the next two years. Byte Software is dedicated to provide timely compliance updates while at that same time providing new functionality. Version 5.0 in particular takes BytePro to the next level by providing mortgage banking functionality that allows clients to take loans from origination all the way through sale on the secondary market.” For more information, visit www.bytesoftware.com.
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