ComplianceEase has announced that its flagship platform ComplianceAnalyzer will now enable the auditing of Veterans Affairs (VA) loans for unique state charges and fee deviations allowed by the Department of Veterans Affairs.
According to the Burlingame, Calif.-based company, VA guidelines restrict lenders to charging 1 percent of the loan amount to cover origination, processing and underwriting costs. This has been handled either through charging a flat one percent fee to cover costs or itemizing fees through state deviations and exceptions and then charge fees that would otherwise not be allowed. With the new enhancement, ComplianceEase added, lenders can test VA loans for allowable state charges and fees that are typically considered unallowable under VA guidelines, thus providing compliance affirmation when itemizing charges and fees.
“More than 30 states allow lenders to charge certain fees that would otherwise be included in the one percent cap for VA loans. Itemizing these fees can be challenging and, if done incorrectly, lead to compliance violations and reputational risk. In fact, several lenders are currently under investigation for overcharging veterans for mortgage loans,” said Sanjay Tibrewal, senior vice president of product management at ComplianceEase. “Our enhancements to ComplianceAnalyzer allow lenders to not only itemize fees for VA loans to take advantage of allowable state exceptions, but also mitigate risk by ensuring compliance and quality control.”