RealEC has rolled out a service that offers lenders the ability to push quality control from the closing table earlier in the process, with loan-level reviews during the origination process.
The technology, called the Loan Quality Gateway, is already in place at three top-five lenders, and is now being made available to all customers, Dan Sogorka, president of the Houston-based subsidiary of Lender Processing Services, told Mortgage Technology during an exclusive interview.
The RealEC platform offers a browser-based application, as well as direct integrations into loan origination systems, for originators to order underwriting and settlement services, monitor compliance and help lenders have the right quality assurance to deter loan buybacks.
“We have a new UI that’s more loan-centric as opposed to order centric,” Sogorka said. “You can come in and say here are the things I need to do with this loan around fraud and compliance and title, appraisal, AVMs, all of that, but you can bring it together and let people look at it holistically across the organization.”
Once underwriting and compliance products are ordered from vendors, the results are now all available in a central location, called an iFolder, making it easier to review an entire loan file.
RealEC has a rules engine programmed to verify loans for government-sponsored enterprise and Federal Housing Administration lending requirements and it can be customized to perform similar reviews based on private-label investor requirements.
“What we’re envisioning at some point in the near future is that there will be other investors in the market besides Fannie, Freddie and FHA,” Sogorka said. “At that point in time, we think we’ll have a great tool to enable them to configure their own rules sets so both people can see what’s going on as they deliver the loans.”
The iFolder enables underwriters and lender QC staff to review loans against the rules engine for accuracy and compliance before they get to the closing table. In the future, RealEC plans to develop the service more to give secondary market investors and aggregators of correspondent loans the ability to perform the same checks, with confidence that the verification data stored in the iFolder is the original version of the report.
That eliminates the duplicate ordering of review data and gives investors the ability to look at more information about loans than what was previously available, like full appraisal reports.
“In the past, not only did they not check it, they also wouldn’t reorder it. We want to be able to give them that,” Sogorka said. “In the iFolder context, it says let me look at the appraised value, then dig down deeper, look at other comps, the square footage. You’re going to have a lot more data.”
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