Equator has updated its Loan Segmentation module to address all of the new rules set forth by the Consumer Financial Protection Bureau (CFPB). The update ensures that all clients using Equator’s EQ Workstation and the Loan Segmentation module, including four of the nation’s top five servicers, will have built-in compliance tools to streamline the adoption of the CFPB’s new servicing rules announced in January 2013.
“Compliance is already a major focal point for servicers, and the recent CFPB ruling is adding one more challenge to their compliance efforts,” said Equator COO John Vella. “With these updates to the Loan Segmentation module, we have substantially reduced the amount of work required to be compliant with all rules and regulations, including the ones recently set forth by the CFPB.”
Equator’s Loan Segmentation module is one of Equator’s full suite of automation modules that cover the entire default process and connect directly to the EQ Workstation, the system that automates every daily activity for mortgage lenders, servicers and GSEs. The Loan Segmentation module helps servicers determine the optimum outcome of a loan at any stage of delinquency. Once the loans have been checked for data integrity and compliance, Loan Segmentation begins automating workflow, distributing the loans to outsource firms or internal employees based on skillset, geography, case load and other client-specified criteria. The module then evaluates and keeps evaluating each loan to determine the optimum resolution, and clearly ranks and explains the options—such as loan modification, short sale, short refinance, or deed-in-lieu.
After a disposition strategy is selected, the loan flows into the next appropriate automation module. Once borrower contact has begun, Loan Segmentation continues to analyze data from the borrower, the market and Equator-proprietary datasets to determine whether the current strategy is the optimum loss mitigation strategy for the loan, and provides its findings to the user. The Loan Segmentation module also continues to monitor the loan for compliance as the selected strategy is implemented—a process that can be implemented on an individual or bulk-level. This helps servicers to properly account for all delinquent loans and ensure compliance throughout the entire default cycle.