Mavent: Tech Can Cut Assignee Liability Risk

Mavent Inc., Irvine, Calif., has announced that its 2comply Expert System can help lenders assure secondary market investors that assignee liability risks are limited and quantifiable.The company noted that Fitch Ratings recently announced revisions to its rating criteria to account for risks posed by anti-predatory-lending laws that subject investors in residential mortgage-backed securities to liability. "Predatory lending liability is increasing in both scale and scope, and has become a serious threat to the success of high-volume, multijurisdictional lenders," said Tim Green, Mavent's chief executive officer. "2comply not only reduces the risk of liability to lenders. 2comply can also reduce the risk of assignee liability, thus increasing the loan's value to purchasers." Mavent noted that Fitch's new criteria require additional credit enhancement for RMBS deals containing loans subject to assignee liability. That change "has the potential to significantly affect the economics of structured finance transactions," Mavent said. The company can be found online at http://www.mavent.com.