IRVINE, CA--(Marketwired - January 25, 2017) - LoanScorecard, a leading provider of automated underwriting and compliance solutions, announced today that Central Pacific Bank, a leading residential mortgage lender in Hawaii and the primary subsidiary of Central Pacific Financial Corp., has implemented Custom AUS as its automated underwriting system (AUS).
Central Pacific Bank provides a full range of mortgage services that include retail, portfolio and correspondent lending, as well as investment and trust services through a network of 35 branches in the state of Hawaii. The bank has more than $5 billion in assets.
With Custom AUS from LoanScorecard, Central Pacific Bank can now customize underwriting decisioning and safely originate compliant assets. The system delivers an underwriting decision to third-party originators (TPOs) and provides an assessment report that includes a breakdown of every rule applied and whether the loan passed or failed a particular guideline -- creating an audit trail for underwriting and ability-to-repay decisions and helping to ensure consistent, transparent application of credit policy.
"Approximately 35 percent of our business is portfolio lending, so it is critical for us to have a system in place that allows us to easily define our underwriting guidelines and ensures any and all exceptions are handled in a consistent manner," said Kirsten Kemper, Vice President, Capital Markets Manager at Central Pacific Bank. "We expect Custom AUS to make us more efficient, reduce errors and provide better feedback to our sales team."
"The new Home Mortgage Disclosure Act (HMDA) reporting requirements go into effect in about a year and the status quo of manual underwriting is insufficient to be in compliance," said Ben Wu, Executive Director at LoanScorecard. "Before the rule goes into effect, many forward-thinking lenders, like Central Pacific Bank, are putting systems in place now that will ensure mortgages applied for at the end of 2017 and closed in 2018 are manufactured consistently and compliantly -- mitigating any fair lending risk."
LoanScorecard® is a leading provider of automated underwriting and loan pricing solutions designed to meet today's regulatory challenges and capitalize on today's market opportunities. LoanScorecard Custom AUS streamlines non-agency mortgage underwriting, eliminating manual processing delays and time wasted on unqualified loans, ensuring that loans are approved and consistently documented to satisfy ATR and fair lending compliance. Custom AUS can be tailored to capture each lender's specific credit policy and render underwriting findings that demonstrate a consistent loan manufacturing process to auditors and investors. LoanScorecard LO Connect electronically distributes wholesale and investor products and pricing to third-party originators, providing TPOs with a real-time, interactive tool to determine borrower fit and price for non-agency programs, and enabling them to submit qualified loans to wholesalers and investors with confidence. Additionally, as the industry's first QM engine, LoanScorecard helps institutions address CFPB regulations, rendering more than four million QM Findings Reports to date. For more information, visit LoanScorecard.com or call 800-617-0892.