ComplianceEase, a provider of risk management solutions for the residential mortgage industry, has introduced a new regulatory compliance risk mitigation solution called ComplianceAnalyzer LIFT (Legal Integrity for Financial Transactions), which meets the new compliance due diligence criteria announced by the various credit rating agencies in late 2008.
The compliance risk mitigation solution is available through all major firms that conduct independent, third-party due diligence on residential mortgage-backed securities (RMBS) transactions.
Recent announcements from credit rating agencies, including Moody's Investors Service, Standard and Poor's and Fitch Ratings, introduced new requirements for due diligence performed on rated U.S. RMBS transactions. The new due diligence requirements for rated transactions detail the need for loan-level regulatory compliance audits that cover all applicable federal, state and municipal mortgage lending laws and regulations.
They also set forth minimum standards for maintenance of compliance technology that is employed as part of implementing that loan-level due diligence review.
ComplianceAnalyzer LIFT is powered by enhanced core compliance audit technology that meets additional certifications required by the new rating agency requirements. It includes the an investor-transferable loan-level insurance-backed AssureCert warranty.
ComplianceAnalyzer LIFT provides monetary protection against regulatory compliance losses from $25,000 to $250,000 per loan. The offering's insurance-backed warranty, AssureCert, covers losses associated with fines, settlements, refunds and related costs resulting from loan-level compliance deficiencies.
Monetary coverage extends to all regulatory tests in the scope of the ComplianceAnalyzer LIFT audit certificate, including all federal, state, and municipal high-cost and anti-predatory lending regulations; Federal Truth-in-Lending requirements; and state consumer credit laws and regulations.