QuestSoft, a provider of mortgage compliance software and services for lenders, have announced an enhanced partnership with Mavent Inc., a provider of automated compliance solutions for the financial services industry, to address regulatory changes in the lending process, specifically those impacting the secondary market.
The partnership, which was first announced in 2004, will continue to pair QuestSoft's Compliance EAGLE with Mavent's rules-based enterprise application as part of a comprehensive end-to-end compliance solution that identifies regulatory exceptions throughout the origination life cycle for improved loan quality. Increased focus by secondary market investors on compliance have led to integration improvements, so correspondent sellers can access extensive compliance reviews from QuestSoft and Mavent on one platform.
"The current dislocation in the mortgage market, onslaught of stricter regulatory requirements and budgetary constraints makes an effective automated compliance solution more critical than ever before," said Louis Pizante, chief executive officer of Mavent. "Manual compliance is bulky and carries with it great potential for material errors. Maintaining a proprietary system is costly. Relying on a mediocre vendor in today's chaotic environment will prove even more costly. Mavent provides lenders the same cost-effective, independent, loan-level compliance review that leading investors use for due diligence and loss mitigation, ensuring lenders are funding salable loans and mitigating the costs associated with put backs, fines and civil damages."
Major investors, such as Fannie Mae and CitiMortgage, use Mavent's engine. As a result of the enhanced partnership, customers of Mavent and QuestSoft can be confident that their compliance reviews meet the same standards as industry investors without the need for an expensive compliance staff or use of multiple, bulky compliance systems.
Houston-based HomeTrust Mortgage, a retail lender with 30 branches in Texas, New Mexico and Missouri, cited the softwares use of the same compliance engine used by their investors, as a key factor in working with QuestSoft and Mavent.
Our investors encouraged us to automate our compliance process, and QuestSoft met both of our requirements," said Patricia Gustafson, senior vice president of Operations at HomeTrust Mortgage. "They used the Mavent Expert System and their system integrated seamlessly with MORvision. In the short time we've been using the system, we've caught and corrected three loans that would have been rejected as high-cost. The income generated by those three loans has already paid for the system."
"The key to making loans attractive to the secondary market and preventing loan buybacks is compliance," said Leonard Ryan, president of QuestSoft. "Lenders are working with a more concentrated staff, and they face an increased number of regulations, more stringent lending legislation and investors that request buybacks. In order to continue successful and prudent lending, they must turn to automated compliance, which gives investors the assurance that each loan meets every necessary requirement."
Mavent and QuestSoft's partnership eliminates the need for their customers to perform data re-entry and manual manipulation of information between different fields, allowing them to save time, improve workflow and allocate resources elsewhere within the organization. The compliance suite provides up-to-the-second compliance with current federal, state and local regulations in effect at the time of the request, including pre-purchase and post-closing compliance checks as well as verification of pre-payment penalty collection.