To help lenders automate paperwork quicker, Mortgage Cadence, a compliance, content, and document creation and management business, has spun off its Finale division into a standalone entity called Finale Document Services.
By using FDS, lenders can have their initial disclosures, closing packages, loan modification claims, short sale documents and any other financial paperwork integrated through a computer and delivered securely to a borrower or agent faster. The platform, which maintains compliance with state and local regulations across the mortgage, consumer and commercial channels, supports document preparation for any financial transaction including first mortgages, second mortgages, HELOCs, loan modifications, short sale, and forward and reverse mortgages.
In order to send the documents more rapidly, FDS evaluates 30,000 formulas every second, supporting roughly 300 pages (10 mortgage document packages) per second or 36,000 packages an hour. The system eliminates manual data entry.
“I pushed my team to develop a document preparation and delivery solution powered by our proprietary rules engine because we could no longer stand idly while the industry continued to be underserved,” said Michael Detwiler, CEO of Mortgage Cadence.
Unlike other document solutions, Finale does not maintain a forms library. Rather, the platform assesses the data directly from an LOS and creates the appropriate documents systematically in real time by including the number of signature lines to accommodate the transaction.
“This method is much more manageable and efficient than trying to maintain a library of thousands of documents in XML, Word and PDF formats,” the firm said. “The ROI is unrivaled.”
The system can generate fully compliant forms for Fannie Mae, Freddie Mac, FHA and VA programs, as well as federal and state disclosures and supports all other investors, too. Other features of Finale include automatic alerts and triggers to notify borrowers and settlement agents of document availability, guaranteed document creation and changes within 24 hours and the enforcement of compliance and risk policy through encryption and rules-based documents.
Since the Denver-based technology solutions provider for the default servicing industry launched in 1999, Detwiler said not one customer has stopped using Finale to go to a competitors product and that “statement alone speaks volumes.”
“We have streamlined implementations and eliminated document-related problems and compliance issues while increasing client satisfaction across the board,” Detwiler added.
Detwiler said it is important for lenders to be compliant with regulations and Finale can help prevent documents from getting loans, which can therefore cause loans to get bought back.
“Finale delivers the document set that is required in complete compliance, regardless of the type of product or the jurisdiction,” Detwiler said. “We have a team of attorneys and compliance professionals ensuring our clients will be protected. The days of having an originator click boxes to determine what docs get included are over. The risk is simply too high. Lenders taking a loose approach to documents will fall out of compliance and be asked to buy loans back. Buyback requests for document-related issues are not as common now, but make no mistake, they will be.”
