Mortech, a Zillow business providing mortgage technology software solutions for mortgage bankers and secondary market teams, has released new lender-paid mortgage insurance (LPMI) products and functionality to the suite of Consumer Financial Protection Bureau (CFPB)-compliance tools built into Mortech's Marksman product and pricing engine.
Mortech says it released the compliance tools last November to allow loan originators to manage compliance upon intake, prior to the loan application's entering the loan origination system, and has been adding functionality since then.
The newest tool added to the suite is an LPMI module that allows the lender to pay the mortgage insurance (MI) premium for its mortgage customers; the one-time premium is added into the interest rate that is charged on the loan. Now, Mortech says Marksman supports both LPMI and borrower-paid MI. If a borrower's paid single premium is used, the points and fees calculation includes any portion of the premium that exceeds the Federal Housing Administration upfront MI premium.
"From a compliance standpoint, since the MI premium is added into the interest rate, the charge is completely excluded from the qualified mortgage points and fees test," says Tom Erickson, mortgage industry and compliance specialist at Mortech, who adds that the enhancements make an "attractive option for some lenders."