Mercury Network Launches Automated Compliance to Conform to New ECOA Valuations Rule

The ECOA Valuations Rule is effective Saturday, Jan. 18, and it mandates that all borrowers confirm statements prior to receiving an electronic copy of any appraisal report. Mercury Network has launched automated compliance for lenders and AMCs, and also creates a full audit trail to prove compliance with the new regulation. The new ECOA Valuations Rule essentially requires that the lender or AMC notify all borrowers of several key issues before electronically delivering any appraisal report. Mercury Network’s secure borrower delivery tool now automatically notifies the borrower in accordance with ECOA, prior to the secure electronic delivery of the appraisal report. “More than 600 lenders and AMCs use Mercury Network to manage their collateral valuation pipelines, so we have to be innovative and on the forefront of compliance,” said Jennifer Miller, president of a la mode’s Mortgage Solutions Division. “These automated safeguards provide tremendous time savings and risk mitigation for our clients, while also allowing them to deliver far better service to their borrowers.” Some lenders and AMCs are still delivering appraisal reports as simple attachments in unencrypted e-mail messages. This practice is a violation of the Gramm-Leach-Bliley Act, and can have serious consequences. Many lenders and AMCs have already eliminated those risks by using an appraisal delivery tool offered by appraisal management software platforms, but many of those platforms have yet to address the new ECOA requirements.