SOURCE: LoanScoreCard

LoanScoreCard

September 10, 2013 14:11 ET

LoanScoreCard Announces Availability of Qualified Mortgage Solution

Automated Underwriting Engine Renders QM Findings Report

PHOENIX, AZ--(Marketwired - Sep 10, 2013) - LoanScoreCard™, provider of automated underwriting engines and compliance solutions, today announced the availability of its Qualified Mortgage (QM) Findings Report at MBA's Risk Management and Quality Assurance Forum. 

Uniquely designed to meet the needs of the changing regulatory marketplace as the Consumer Finance Protection Bureau (CFPB) final rule goes into effect on January 10, 2014, LoanScoreCard's QM Findings Report provides immediate assurance to both lenders and investors that loans meet QM guidelines -- and why -- thereby saving time and operational resources.

Using file data combined with sophisticated logic, the QM Findings determine whether a file is considered a QM under one of the four possible QM Types, and if so, whether the file has Safe Harbor or Rebuttable Presumption for that QM Type in a potential Ability-to-Repay (ATR) violation claim. Also included in each QM Findings is an individual Pass/Fail assessment of each requirement for the particular QM Type for which the loan is being assessed, including new required calculations under QM such as the ARM Qualifying Rate for determining DTI. A detailed analysis in the QM Points & Fees section explains the cap applied and itemizes the fees included and excluded. In addition, an easy-to-read messaging section thoroughly explains the QM Findings, criteria applied in the assessment and other relevant guidelines.

The QM Findings Report can be incorporated into any system via web services, and run at any stage of the loan process to ensure compliance. Retail lenders may want to determine the loan's QM status prior to initial disclosures while wholesale and correspondent investors can benefit from validating the loan's QM status during the originator's loan submission. All users, including portfolio lenders, can retain the QM Findings as evidence of compliance for audit purposes and to defend against an ATR violation claim.

"CFPB compliance is significant, complex and all-encompassing. The challenge for lenders goes beyond the need to ensure their loans are QM; they must also retain evidence of compliance for three years," said Allen Meigide, director of operations at LoanScoreCard. "The QM Findings Report meets that challenge and more with detailed analysis and transparent documentation for confident underwriting."

To schedule a free demonstration of this revolutionary QM solution, email QM@LoanScoreCard.com or call 972-584-7203.

About LoanScoreCard

LoanScoreCard is a leading provider of automated underwriting and compliance solutions, designed to meet today's regulatory challenges. As the industry's first AUS engine for QM, LoanScoreCard helps financial institutions address new CFPB regulations regarding Ability-to-Repay and Qualified Mortgages. We are also the first vendor to integrate with FHA TOTAL Scorecard, offering FHA decisions at a fraction of the traditional cost. LoanScoreCard provides easy-to-read Findings Reports that clearly capture how a given loan meets current underwriting and compliance guidelines, so that all necessary documentation is retained with the file to support lending decisions in an investor review, regulatory audit or potential claim. For more information, visit LoanScoreCard.com or call 800-617-0892.

Contact Information

  • Contact:
    Marketing Communications
    BJ Bounds
    +1 214-252-5617