QuestSoft, a provider of mortgage compliance software and services for the mortgage industry, has significantly enhanced its Compliance EAGLE module that helps lenders validate and review multi-state and single state mortgage exam files prior to submission to governing agencies. Administered jointly by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR); the multi-state exams for state-chartered lenders began in January of this year. Several states have already begun the process, while many others will be implementing the exams in early 2012.
Lenders utilizing the Licensee Examination File (LEF) Validation features in Compliance EAGLE, which is certified through RegulatorConnect, will be able to review loan files by batch prior to submission to state examiners. This will result in remarkable improvements in accuracy, a reduction in data entry errors and enhancements to a financial institution’s ability to meet regulator demands.
“The new exams use electronic formats to scrutinize over 250 data elements of each loan file, far more data than in the past,” said Leonard Ryan, president of QuestSoft. “Lenders using Compliance EAGLE can review all of their loan files, test the files against compliance violations and generate reports that will help them understand the quality of their loan data.”
QuestSoft also introduced its new ACE State Exam Services (Accurate Compliance Evaluation) to further assist lenders with the LEF process by formatting all data to the regulator specifications, filtering the data per examiner request, and providing a streamlined submission.
Compliance EAGLE evaluates loan files against a comprehensive suite of compliance regulations and standards, including the Home Mortgage Disclosure Act (HMDA), Community Reinvestment Act (CRA) and flood determination requirements, as well as the Truth-in-Lending Act (TILA), and federal, state and local consumer and predatory lending laws. Additionally, Compliance EAGLE’s reviews are widely accepted by many secondary market investors.
“Preparation is the key to passing the new state-level exams,” Ryan added. “Lenders who can get a complete picture of their loan files and compliance status ahead of time have the advantage of being able to correct errors and clarify areas that may need more explanation.”