Tool Launched to Evaluate Loans, Alleviate Compliance Concerns

SEP 27, 2013 9:31am ET

A mortgage software provider recently launched a tool at the request of their clients that unifies compliance tracking and rules application within a common management framework to monitor if a loan is delinquent.

Equator’s Loan Management, which works in conjunction with the Los Angeles-based software provider’s Equator platform, is meant to control critical decisions and calculations at both a portfolio and loan level in order to enhance compliance through centralization.

Loan Management is the entry point for any loan entering the Equator platform and checks it for compliance with a number of guidelines and regulations that have been established, whether it comes from a state or federal government entity, investors, or the Consumer Financial Protection Bureau.

Therefore, with this tool, servicers can proactively manage compliance on every loan from the moment it starts to process within the Equator system.

“As rules and regulations become more and more complicated, servicers are being faced with more and more challenges,” said John Vella, chief operating officer at Equator, a company that provides software solutions for lenders, servicers, real estate agents and other real estate industry professionals. “Loan Management is a solution that helps servicers stay compliant and profitable. While no two loans are identical, Loan Management provides a configurable framework for comprehensive, accurate evaluation.”

After all compliance requirements are identified and met, Loan Management then analyzes all possible outcomes for the loan. The solution determines the best option that will minimize any loss possibility, and recommends that optimal outcome decision to the user.

Additionally, the solution’s analytics acts as a “control tower” by assigning loans to proper outsourcers, individuals or teams. The product can be used to determine the optimal outcomes for each loan based on its own characteristics.

The solution is an evolution of Equator’s Loan Segmentation technology and is built on the company’s enterprise rules engine. By being fully configurable, Loan Management integrates compliance requirements and rules from all of Equator’s other default products, as well as any client-configured rules, which helps provide a greater level of comprehensive verification for a loan.

“Using Loan Management, servicers can quickly evaluate loans to alleviate compliance concerns at the beginning of the process,” said Equator CEO Chris Saitta. “Applying the appropriate rules at the beginning of the default process can save time on the backend, and reduce the overall cost to service.”

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