LoanSifter has enhanced its solutions to help lenders maintain compliance with federal Truth-in-Lending Act (TILA) changes scheduled to take effect on April 1, 2011—while at the same time, delivering real-time, up-to-the-minute loan pricing with integrated marketing and secondary tools. TILA, also known as Regulation Z, requires lenders to disclose clear terms of all lending arrangements and all costs. The scheduled changes to Regulation Z will prohibit mortgage brokers and loan officers from receiving compensation based on a loan's interest rate or other terms, or the yield spread premium (YSP).
The enhancements to LoanSifter’s product suite now enables clients to customize and report on their own loan officer compensation plans, thus providing them with the tools to better manage their compliance needs. These compensation plan changes flow throughout the entire system, including search results, LOS integrations, secondary desk, management reports, auto-quoting, Web site quoting and marketing campaigns.
“LoanSifter has made the transition of incorporating loan officer compensation into our daily workflow easier than we could have ever imagined,” stated Jeff Young, vice president of secondary at Bloomington, Ill.-based Mortgage Services III. “Having all of the LoanSifter features, which include the ability to get price quotes on different scenarios, robust secondary tools, DataTrac integration along with the ability to set up and assign different loan officer compensation plans, has given us a distinct advantage in the marketplace.”
Prior to the technology update, LoanSifter had ongoing conversations with the Federal Reserve Board and hired a legal firm specializing in mortgage regulatory changes to ensure all of the company’s solutions were compliant with recent and upcoming regulations, including anticipated rules resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act. Significant consideration was also given to ensure a user interface that remained intuitive and was matched with powerful tools to drive loan production.
LoanSifter’s eOriginations, OriginatorPLUS, and Banker product suites each offer ongoing compliance support for all of the essential elements for loan origination, including credit reports, eligibility and pricing, APR calculation, RESPA-compliant Good Faith Estimates (GFEs), disclosure documents and the collection of electronic signatures. The updated LoanSifter suite allows mortgage brokers and loan officers to design compensation plans that are broken out clearly in product and pricing search results, but are flexible enough to meet unique business needs.
“The business of originating loans is complicated enough without the extra burden of new and constantly changing rules,” said LoanSifter President Bruce Backer. “Our goal is to make life easier for lenders. By continually enhancing our solutions such as eOriginations, OriginatorPLUS and LoanSifter Banker, our customers have a system to help facilitate compliance.”