Eliminating Some Multistate Closing Hassles

ROCKVILLE, MD-Outsourcing comes to the rescue of servicers dealing with the daunting process of complying with different sets of title laws and regulations required in multistate closings.

Strategic partnerships offer such solutions for lenders and servicers trying to meet multiple state and federal requirements.

One market-tested example is the cooperation between LoanSifter Inc., Appleton, Wis., a provider of loan management tools including Web-based pricing solution LoanSifter and 1003 applications that deliver real-time quotes, and Wolters Kluwer Financial Services, Minneapolis. It enables lender and servicer clients to generate standard and customized initial documents for automatic delivery of up-to-date disclosures, ensuring proper compliance, said LoanSifter president Bruce Backer. WKFS provides regulatory compliance, content and technology solutions that help manage mortgage lending risk. Its Disclosure Manager platform automatically generates compliance documentation as required for a specific transaction and jurisdiction. Users can outsource the printing and mailing of paper disclosures when needed or requested by the borrower through the WKFS mail fulfillment center.

Tanya Themistokleous, senior VP of marketing and sales for Closeline Settlement Services here, sees a national network of fully staffed offices as a vehicle that allows for service consistency even when conducting multistate transactions. Founded in 1993 by attorneys Michael P. Bell and Elliot M. Liss, Closeline operates as a Web-based multistate title agency that offers title and settlement services to brokers, lenders, investors and realtors. The company says its one-stop-shop customer service model was based on years of feedback from long-time clients who prefer a centralized process. This way each customer is assigned an account manager, or only one point of contact regardless of what state the transaction is performed in.

To continue working in the mortgage industry, lenders need to make sure they comply with all the regulations, Mark Seccombe, SRA, MAI, chief appraiser at Universal Lending Corporation. He finds that products like Collateral Headquarters a workflow platform developed by FNC for regional banks, credit unions, and appraisal management companies offer that assurance.

FNC of Oxford, Miss., initially released its CollateralHQ product in early 2008. But according to FNC product manager, Kagan Coughlin, it was a maturing product line until 2009 when pending regulations that required mortgage lenders to concentrate on compliance more than ever caused a significant increase in demand. The centralized platform provides automated appraisal ordering, assignment, tracking, and allows users to review lender compliance with OCC, OTS, Federal Reserve, FDIC, and other federal and state regulations.

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