ComplianceEase, a Silicon Valley, Calif.-based automated compliance solutions provider, now offers a comprehensive insurance-backed warranty program for loans that have been audited by its ComplianceAnalyzer solution.
The program, called AssureCert, provides a warranty for compliance defects, including the new TILA-RESPA Integrated Disclosure (TRID) and qualified mortgage (QM) rules as well as federal and state consumer lending and high-cost regulations. The company says this versatile program may be used as compliance repurchase relief for secondary market transactions.
AssureCert covers originators and secondary market investors for up to $50,000 per loan over a seven-year period and is backed by an A.M. Best A-rated insurer. There is no per-claim minimum or deductible, and the warranty is transferable to secondary market investors or servicers.
The following loan products are eligible: first and second liens; purchase, refinance and equity transactions; conventional, Federal Housing Administration and Veterans Affairs loans; and all property types. The warranty does not require minimum credit scores or place limits on loan to value.
AssureCert provides protection from financial losses such as fines, penalties, restitutions, judgments, defense costs and reasonable plaintiff's attorney fees from actions brought against the financial institution for specific regulatory compliance violations that are not reflected on the ComplianceAnalyzer report for a covered loan. AssureCert also covers lack of marketability of an affected loan in the secondary market, due to compliance defect-related repurchases from investors.
‘The new QM and TRID rules have exposed lenders and investors to civil lawsuits, as well as fines and repurchase risk. Our insurance-backed AssureCert warranty will offer our clients – both large and small – additional protection and peace of mind,’ says John Vong, president of ComplianceEase.
‘Over time, AssureCert may also come to be used in the secondary market as a credit enhancement for structure transactions. Finally, the amount and scope of the coverage further attests to the reliability of the complete suite of ComplianceEase's solutions,’ Vong adds.