Texas Dow Streamlines HMDA Reporting With Automated Solution

With the annual March 1 date looming for federal Home Mortgage Disclosure Act compliance, Texas Dow Employees Credit Union has successfully implemented an automated solution that saves time, money and beats the deadline.

"We previously used the free Federal Financial Institutions Examination Council software, which was very limited in what you could get out of it and the reports that it could give you," says TDECU vice president of Mortgage Lending Loretta Williams.

When the FFIEC free software became exhausted, Williams said the $2 billion dollar credit union, supporting 179,411 members in 39 service centers, began the search for a solution that would meet all requirements.

In 2011, the credit union was introduced to QuestSoft HMDA Relief, which provides comprehensive and automated compliance services. The software imports and tests records at speeds up to 10,000 records per minute and can reduce processing and submission time by 80 to 90%.

Aside from the investment, all that is required of a credit union is a final database and the solution then automatically encrypts the report and creates an email submission that is ready for review.

"I spoke with them [QuestSoft] at a conference," recalled Williams. "They came highly recommended and integrated well with our origination software, Calyx." After a three- to four-month discovery process, the solution went live.

With approximately 700 employees, 34 of which are in the IT and e-commerce division, TDECU, Lake Jackson, Texas, was drawn to the downloadable automated HMDA solution, in part, because employees could easily edit reports before submission.

Additionally, the software, which Williams said is "easy" to use, allows for accurate preparation and submission of HMDA data including, geocoding, summary performance reports and rate spread analysis reports by race, ethnicity and gender.

"We are able to keep up monthly and look at reports and look for any discrepancies or problems and resolve them immediately," said Williams. "I was surprised about how much more information you have easy access to than with the free software off the internet."

The value-add was realized immediately—for both the credit union and members. "One click runs the LAR Public Option that we can provide in less than five minutes to anyone that asks for it," says Williams. And from a technology perspective, the "user-friendly" software is a turnkey solution. "There are quarterly updates. The email is sent to IT and they just have to click on the link and update the software on the server. It takes less than two days and is seamless for the user."

With all financial institutions required to meet the March 2014, deadline for HMDA compliance, Williams said Texas Dow Employees Credit Union will be able to submit by Feb. 1. And with new regulations mounting, without a software solution in place, meeting all compliance issues could prove otherwise difficult.

For example, Williams' points to the Consumer Financial Protection Bureau and the expanded mortgage lending guidelines enacted through the Dodd-Frank Act.

"Remaining compliant will require much more than the standard Excel spreadsheet that we all once depended on. Using technology based systems like QuestSoft has been an essential tool for TDECU that we depend on to analyze our data and submit accurate reports to the FFIEC."

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