How to Simultaneously Be Transparent and Compliant

MAR 19, 2013 2:51pm ET

As a result of Dodd-Frank, and other related regulatory initiatives and best practices, mortgage servicers are increasingly instituting policies and procedures that ensure mortgage loan document and data is complete and always available.

Several industry solution providers have led the pack in advancing the quality and availability of mortgage data and analytics, as well as the opportunity to source and retrieve mortgage documents from any jurisdiction. With the goal of creating true end-to-end transparency—critical to compliance with Dodd-Frank—they offer the additional benefit of making servicers’ workflow more flexible, cost effective and better prepared to address market dynamics.

Critical to finding the right solution is underlying expertise and technology (such as secure, Web-based document platforms), integration, imaging and workflow mapping.

These elements will all make a servicing operation more efficient and profitable, while demonstrating the commitment to creating the servicing center of excellence the CFPB and other regulatory bodies are seeking.

For example, with the right solution partner, a mortgage servicer can:

  • Quickly receive recording reference data (dates, instrument numbers, recording book), beneficiary, assignments and legal descriptions.
  • Access millions of document images in repositories or county jurisdictions.
  • Obtain ownership, mortgage, assignment, parcel, sales value, property lien position and flood zone intelligence quickly and easily.

Also, the right solution can act as an electronic bridge between submitters of real estate documents and county offices, enabling documents to be prepared, submitted, recorded/rejected, indexed and returned with speed and efficiency.

The bottom line is that it’s critical to demonstrate that everything was done correctly when originating or servicing mortgage loans. When documentation is not readily available, disorganized files can lead to audit fines, lost productivity and costly buybacks.

Quick response to audit requests and documented chain-of-custody demonstrate strong internal and external policy adherence.

And with Dodd-Frank, if servicers don’t respond quickly to an audit request with clean, well-organized files, and a workflow that demonstrates best practices, they’re likely to face even more scrutiny.


Michelle Rowley is mortgage servicing advisor for CT Lien Solutions, a lien search, recording services and life of loan service provider under Wolters Kluwer Corporate Legal Services.

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