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Ncontracts, a provider of risk management and compliance solutions, announced that the company’s Questsoft lending solutions team has collaborated with Discover Financial Services to create a new prequalification review. According to the company, the new review helps streamline loan originations while ensuring compliance with all applicable Federal, State, and local rate limits.
General Manager of Discover Home Loans, Nicole Straub, describes the software solution as “providing a simple and seamless application process from start to finish for our customers."
Before LeadER, interest rates exceeded the high-cost threshold and loans were manually adjusted during underwriting, causing buyers to require burdensome re-disclosures late in the process. Ncontracts and Questsoft’s LeadER, features a compliance system that automatically adjusts the pricing when the rate exceeds high-cost thresholds, so applicants have the right price quote upfront. The system also evaluates applicable index values while calculating and verifying APR and payment streams for multiple side-by-side quotes and estimating calculations for all types of loans.
“LeadER can also now be used throughout the mortgage industry to help other lenders accurately quote rates to applicants while remaining compliant with all the various rate limits," said Steve Butler, senior vice president, automated mortgage lending solutions at Ncontracts.
More than 1,300 applicants have received auto-adjustments since launching the prequalification review, including 200 applicants who previously required manual adjustments during final underwriting. Additionally, 71 applicants were able to receive lower rates during the initial sales discussion that brought their debt-to-income ratios under the required threshold, according to a press release.