LoanLogics announced that it has significantly expanded its compliance unit so that it can better help lenders comply with new regulations and ensure they can create a quality product, as well as reduce expenses and the possibility of loan buybacks.
The unit is led by three of the most experienced and respected senior compliance executives in the mortgage industry Mike Vitali, senior vice president and chief compliance officer; Gerry Glavey, senior vice president and chief credit officer; and Joe Helfrich, executive vice president and chief legal & risk officer.
“Under the regulations that define quality mortgage requirements, lenders must minimize loan defects and cannot push through inferior loans or they risk buybacks,” said Vitali, who just recently joined LoanLogics. “That can only happen when they have the advanced systems and analytics in place, as well as the compliance expertise necessary, to produce quality mortgage loans.”
This senior executive team’s understanding of the regulations, coupled with LoanLogics’ industry leading technology creates a one of a kind combination in the mortgage industry. Together they will help lenders cut expenses, reduce their exposure, and close loans faster than in the past.
“We are able to help lenders produce better quality loans and get them through the system faster, with less risk, and with less expense than in the past,” said Glavey. “That is critical in a marketplace where profit margins are thin. We think the combination of great technology and superb compliance leadership will always benefit our clients.”
“For years, some lenders would only perform quality control on 10 percent of loans after they closed, but today lenders realize that simply is not good enough,” said Helfrich. “Quality control needs to be performed on loans from origination until the loan is paid-off and needs to be applied to 100% of loans to truly manage risk.”
“There are many talking heads out there from a compliance perspective, many times the advice you are getting is only from attorney’s who are interpreting the law to the best of their ability or junior compliance people who have never had practical experience as a mortgage lender or working in a government entity,” said Vitali. “Our compliance leadership team is a great mix of experience from legal, regulatory and practical lending experience. Our goal is to provide sound advice that turns a compliance burden to true business benefit.”
One benefit of higher quality loans that have undergone strict quality control is that they are likely to attract the private sector back into the secondary market. Attracting private investors back into the market means more loans will be available and the market will grow, but that won’t happen if there is a problem with the quality of loans.