Products Help Servicers Maintain Regulatory Compliance

Technology provider ISGN recently launched two new products that helps make sure servicers and lenders are following industry guidelines. Image: Fotolia

As servicers try to comply with all of the new industry regulations being issued today, ISGN is doing their part in helping companies maintain compliance to these regulatory requirements.

First, the Dallas-based technology provider launched a platform that combines automation and vendor management functionality in order to increase financial institutions’ productivity and provide cost savings when processing defaulted loans.

Called Tempo, the platform offers real-time work queues and reportable communication to ensure that everyone efficiently fulfills all required steps to complete a loan. The platform is configured for bankruptcy, loss mitigation, foreclosure, REO, document management, claims and litigation.

According to Ankush Dham, director of technology products and services for ISGN, servicers who utilize Tempo will not only remain compliant to mortgage regulations, but have significant cost savings when conducting their business. Dham said the platform can save a company nearly $800,000 in cost savings a year.

“We built Tempo with a strong focus around profitability, which is a huge issue for servicers today due to new regulations,” Dham told this publication in an interview. “Tempo is a system of record meant to help servicers manage tasks on a particular loan and monitor whether their doing best practices for a borrower. In today’s dynamic and ever-changing regulatory environment, ensuring complete accuracy within the mortgage servicing market is paramount,”

Tempo is able to integrate with any servicing application, attorney network, or other third-party system, Dham added. Therefore, this functionality ensures all parties are aware of each step’s progress.

Additionally, the web-based platform features a fully customizable workflow engine, allowing institutions to change or add tasks anytime throughout the loan process. For example, institutions are able to save costs by scaling quickly to critical timelines with real time work assignments, as well as save time with researchable loan history and systemic process workflow, reducing the need for a large, dedicated staff.

Tempo reduces risks and error with less human interaction and is fully compliant to Fannie Mae and Freddie Mac guidelines, said Cindy Walton, senior product manager of default products for ISGN.

“In order to offset the higher cost structure in servicing, technology solutions are a key lever to improving precision, reducing cost and enabling lenders to strategically focus on their business,” said Paul Imura, chief marketing officer at ISGN.

Another way ISGN has helped servicers and lenders comply to new industry rules is by forming a relationship with Trupoint Partners to offer a comprehensive Consumer Financial Protection Bureau mock audit.

During the audit, ISGN performs a targeted loan review of potential problem loans identified through Trupoint Analytics’ Fair Lending and Home Mortgage Disclosure Act analysis systems. Then, ISGN’s professional services group—which assesses compliance and operational risk and provides process optimization and cost reduction strategies—has developed a proprietary risk framework to conduct a mock CFPB audit for financial institutions and lenders.

“This approach provides our clients the ability to conduct a ‘dry run’ to bring out any issues prior to the actual regulatory review,” said Lisa Weaver, senior vice president of mortgage solutions for ISGN.

Trupoint Analytics, based in Charlotte, is a Software-as-a-Service-based comparative analysis platform for financial institutions that provides data analytics and lending report insight to help servicers and lenders understand and mitigate Fair Lending and HMDA risks.     

“When left unchecked, Fair Lending and HDMA risk can stall growth, undermine acquisition plans, hinder profitability and damage an organization’s reputation,” said Trey Sullivan, CEO of Trupoint. “The collaboration of Trupoint’s compliance analytics combined with ISGN’s compliance expertise compounds our ability to offer cost-effective solutions in a difficult area where mistakes can have severe consequences.”