MortgageFlex Systems Inc., offering loan origination and servicing technology, is partnering with Lenders Compliance Group Inc., a national mortgage risk management firm, to help further ensure that MortgageFlex's LoanQuest loan origination system (LOS) is fully compliant with the Consumer Financial Protection Bureau's new integrated disclosures and related rules going into effect on Aug. 1, 2015.
‘Compliance is our customer's key focus, and it is our responsibility to deliver a secure system that is federally compliant,’ says Craig Bechtle, chief operating officer for MortgageFlex, in a release. ‘While the upcoming Real Estate Settlement and Procedures Act (RESPA) changes are being touted as beastly by some vendors, there's no reason for panic if your technology vendor is acting proactively and taking their customers' needs into consideration.’
A major challenge for technology providers serving mortgage originators is ensuring that their systems are both compliant and secure.
‘MortgageFlex has taken an additional security step to facilitate a smooth transition to these changes,’ Bechtle adds. ‘We have chosen to employ the Lenders Compliance Group to provide services on an ongoing basis.’
MortgageFlex says its LoanQuest LOS performs continual compliance calculations and is backed up with seamless integrations to third-party document providers.
The CFPB's new disclosures involve combining the existing RESPA (Reg. X) and Truth In Lending Act (TILA) (Reg. Z) disclosures into a single document, called the Loan Estimate form, and replacing the existing HUD-1 and TIL forms with a new Closing Disclosure form.
Additionally, Freddie Mac and Fannie Mae have released the Uniform Closing Dataset, a common industry dataset that leverages and maps to Mortgage Industry Standards Maintenance Organization (MISMO) data standards, to support implementation of the TILA/RESPA Closing Disclosure form. MISMO is developing a corresponding mapping dataset for the Loan Estimate form.
Through the partnership, MortgageFlex will be able to ensure that its LoanQuest LOS fully meets the CFPB's new rules, explains Jonathan Foxx, president and managing director of Lenders Compliance Group.
MortgageFlex reports that it has already begun system modifications in advance of the new rules.
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