Automated Underwriting Engine Renders QM Findings Report
IRVINE, September 10, 2013 – LoanScorecardTM, 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."
LoanScorecard is a leading provider of non-agency AUS, loan pricing solutions and borrower point-of-sale designed to meet today's regulatory challenges and capitalize on current market opportunities. LoanScorecard helps institutions address CFPB regulations through its QM Findings, the industry's first qualified mortgage (QM) engine, which has rendered more than 5 million QM findings reports to-date and supports banks and credit unions preparing for the upcoming impacts of CECL.
For more information, visit loanscorecard.com or call 800-617-0892.
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