In an industry where compliance is critical, it's important to partner with someone that understands all the regulatory compliance risks associated with purchasing loans in the secondary market. We've developed proprietary systems designed to detect violations of federal, state, county and municipal laws. We have extensive experience performing full compliance reviews, as well as targeted compliance reviews that focus on a specific law or previously uncovered area of concern. We are also approved to perform Fannie Mae anti-predatory lending reviews. Our thorough, hands-on process involves numerous checks and balances to ensure accuracy. Full regulatory compliance reviews include:
TILA – Complete recalculation of annual percentage rate, amount financed, finance charge, payment streams and index verification.
High Cost – Identification of loans that do not comply with Section 32 (HOEPA), state, county or city high-cost statutes.
Right of Rescission – Verification that correct form has been used, document has been produced and executed properly and “cooling off” period has been met prior to funding loan.
RESPA – Verification that HUD-1 and all disclosures are included.
Prepayment Penalty and Late Charges – Identification of loans that don't comply with regulations and verification of any claimed preemption rights applicability.
Disclosures – Verification that all state- and federal-specific required disclosures are present and properly executed, including those required for Texas cash-out refinances.
Subprime Deals – If required, verification of compliance with Fannie Mae's anti-predatory lending compliance profile.
Compliance Event Grades
Based on compliance review results, each loan is evaluated and graded for adherence to federal, state and local regulations according to these compliance event grades:
Compliance event grades
- Complies with RESPA, TILA, HOEPA, state and local regulations
- Exceptions represent immaterial infractions of RESPA, TILA, HOEPA, state and local regulations
- Represents an unacceptable serious compliance violation
We look forward to sharing our expertise and insight with you as we partner together to create customized solutions to your business needs. Let us show you how we can meet your compliance needs.