Responding to market demand for automated regulatory compliance tools Equator has incorporated the new mortgage servicing rules set forth by the Consumer Financial Protection Bureau into the Equator Loan Segmentation module.

The update enables users of the Equator EQ Workstation and Loan Segmentation module to include built-in tools that streamline the adoption of the new MSRs announced by the CFPB in January 2013.

“Compliance is already a major focal point for servicers,” said Equator COO John Vella. The module enables mortgage servicers to stay CFPB compliant “at any stage of loan delinquency.”

He argues that since the recent CFPB ruling is just another challenge to mortgage servicers who need to stay in compliance, automation helps reduce substantially the amount of work they are required to do to comply with all rules and regulation changes.

Hence, the Los Angeles-based default servicing technology provider said it is continuously updating its Loan Segmentation module.

It consists of a suite of fully automated, remotely accessible modules that cover the entire default process. Once the loans have been checked for data integrity and compliance the module automates the workflow and distributes delinquent loans to in-house staff, or outsourcing firms, “based on skillset, geography, case load and other client-specified criteria.”

The module starts monitoring the loan and generates loan-specific workout options such as a loan modification, short sale, short refinance, or deed-in-lieu.

“To determine the optimum resolution,” after a loan disposition strategy is selected, the loan flows into the next appropriate automation module to analyze borrower data after borrower contact and re-evaluate the current loan loss mitigation strategy and reports data findings to the user.

The Loan Segmentation module monitors loan compliance on an individual or pool-level throughout the loan default cycle.

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