Loan Quality Management | Mortgage Audit Software

Data-driven digital mortgage audit software puts loan quality control into high definition.

Loan Quality Management Platform LoanHD® Clarity in Loan Commerce®

Loan Quality Management Platform LoanHD® Clarity in Loan Commerce™

Paying too much for mortgage QC technology ?

Automate first.

Optimize human capital and “right-size” resources.

Continuously adding auditors to
Pre-Closing, Post-Closing and Compliance audit tasks to manage fluctuating loan volume is an expensive way to ensure loan quality.

With mortgage audit automation, reducing the cost of creating and assuring loan quality
is possible.

Red light, green light TRID
and HMDA compliance.

Manual tasks and unintegrated workflows can drag down loans per person per day (LPPPD) and distract staff from managing exceptions and clearing defects.

With automated mortgage QC software, double and triple productivity is possible.

Unlock the story your
loan quality data holds.

Finding the root cause of mortgage loan quality issues can never happen when data is inaccurate, trapped in spreadsheets or hidden in pdf reports from your QC outsourcing vendor.

With rules-based automation and machine learning technology, discovering the weak links in your loan manufacturing process is possible.

I need data-driven mortgage loan quality control automation.

Tell me more

Cloud technologies enable mortgage software that reduces the cost of creating and assuring loan quality.

Data-driven digital technology delivers lasting impact to loan quality through the automation of
audit tasks, a structured workflow to find and fix defects and comprehensive reporting to
understand the root cause of issues and take corrective action.

The LoanHD platform does that and more using purified data to signal defects and manage risk
in Pre-Closing, Post-Closing, HMDA, TRID and Pre-Funding audits. Real-time, scalable efficiency focuses
audit staff on exceptions and creates greater transparency into loan quality.

LoanHD^® loan quality management supports quality
checkpoints from origination through sale or servicing.

Few would argue that regulatory obligations have made the job of ensuring loan quality tougher and more expensive over the past decade. Investor scrutiny is now on par with regulator examinations and borrowers are demanding more from the origination process. This trifecta of pressures is why lenders continue to turn to LoanLogics’ flagship product, LoanHD, to enable more accurate, efficient, transparent audit reviews.

Compare mortgage loan file data across all sources to improve audit accuracy.

More effective Pre-Closing, Post-Closing, Pre-Funding and Mortgage Compliance audits begin with the accuracy of your data. Prior to an audit, IDEA^® Services for intelligent data extraction & automation capture a 360-degree view of data by comparing system’s data with loan file documents. Advanced machine learning and data extraction technologies combine with human operator workflow to deliver 99% data accuracy. The resulting purified data is used by LoanHD to power automated audit workflows. And, discrepancy reports can be generated for loan origination system (LOS) data updates.

Rules-based automation completes a significant portion of audit tests, focusing auditors only on exceptions. Customized tests can be added to our deep library of audit rules automation to enable even more control over quality metrics important to your business. And, LoanFacts^® provide a view into purified data elements and enable comparison of data that conflicts in a failed test. One-click access to specific documents based on relevance to the audit test accelerates review.

AUTOMATED RULES CLEAR
TESTS PRIOR TO AUDIT REVIEW

LOANFACTS^™ CONFIGURED
IN LOANHD^®

Increase productivity and cost saving results for mortgage quality control.

LoanHD data-driven digital technology includes sampling tools that make it easy to create stratified, discretionary and/or statistical segments of loans to review. It then uses a structured workflow for auditors to find and fix defects, quickly and accurately. Audit specific worksheets in LoanHD use the simplicity of a green light to indicate a test has passed and red to signal to auditors that a manual review of loan file data is required.

Once defects are identified, real-time notifications to responsible parties are sent through the LoanHD Audit Response Center (ARC). This secure web portal, provides a centralized, streamlined rebuttal process. Information and documentation can be shared within the ARC to efficiently clear defects.

All of this results in industry leading loans per person per day (LPPD) productivity and high-quality loan production.

IMPROVES LOANS PER PERSON PER DAY

Achieve the transparency needed for loan quality process improvements.

LoanHD^® loan quality automation offers the flexibility to insert quality checks at various points in the loan manufacturing process. A selection of 20 Component Review Audits allow for a more efficient mix of full pre-close and component reviews to cost-effectively meet Fannie Mae prefunding review requirements. All audit projects can be easily managed through dynamic dashboards that provide project status and loan level-transparency. Project and loan level detail offer management the ultimate transparency to ensure identified issues are tracked to resolution. In addition, an audit trail offers complete transparency for regulatory review of any requested loans.

Using the Report Builder functionality of LoanHD^®, the process of creating monthly, quarterly and yearly views for agency, management and executive quality control reports can be simplified. Out of the box and customizable business intelligence can help visually identify patterns related to error responsibility, fraud, issues with underwriting criteria, or poor process design.

Then implement Action Plan Reporting within the system to monitor and manage initiatives that remediate deficiencies and improve loan quality management practices. Measure results of the action plan over future months to improve mortgage loan quality.

Address the diversity of requirements and create consistent quality
for correspondent loan acquisition transactions.

For correspondent investors and sellers alike, the LoanHD^® platform provides a vehicle for facilitating efficient, high-quality pre purchase / pre ship audits.

IDEA^® data extraction and automated rules can immediately identify loans with missing documents, data discrepancies and defects so that zero time is wasted on reviewing loans that in fact have no issues.

Audit rules complete a significant portion of tests and populate LoanHD^® audit worksheets with results, accelerating loan review. Best practice pre-close audits, high risk loan characteristic component reviews, and the ability to create custom tests for investor specific stipulations enable consistent review and complete transparency.

Confidence in loan quality increases when you can inspect what you expect. Agency, management and operational level reporting, along with a report builder capability, provides the level of transparency needed for correspondent loan acquisition.

Correspondent Investor benefits

Pre Purchase Audit Review

I’m an Investor

The quickest way to profitable, safe correspondent loan acquisition is to scrutinize and validate loan quality using the power of automation. Correspondent investors need more flexibility to scale their operations in support of monthly loan volume and more control over costs to optimize margins.

IDEA^® and LoanHD^® Pre Purchase Audit enables successful outcomes that include:

Scaling operations to accommodate monthly
loan volume.

The ingestion of loan files from sellers is a significant driver of expense and can throttle business growth. IDEA^®, intelligent data extraction and automation, can significantly lower costs associated with data and document processing and provide the scale needed to pursue business expansion.

Attracting sellers with fast turn-around.

Through automation and structured audit workflow, audit staff can quickly identify exceptions and perform any manual tests needed to complete file reviews, significantly reducing the time it takes to deliver STIPs to the seller.

Real-time notifications to sellers and access to an audit response portal enable secure electronic submission of trailing documents and allow conditions to be cleared. Loan suspense time is reduced and funding velocity increased, a clear competitive advantage.

Evaluating sellers and building relationships.

Global to granular reporting on loan quality supports seller specific feedback and comparisons of quality across sellers. Sellers benefit from feedback on their defect trends, which can be used to inform relationship milestones and help sellers improve their own quality management practices. Peer benchmarking across sellers provides insight for pricing strategies and can identify opportunities to drive product mix through the acquisition of new sellers.

Correspondent Seller benefits

Pre Ship Audit Review

I’m a Seller

Gone are the days of ‘ship and hope.’ To avoid liability and the mistakes of the past, investor scrutiny has increased so much that it rivals that of regulators. This has heightened the quality mandate and placed more emphasis on the accuracy of loan files to reduce loan suspense and improve warehouse velocity.

LoanHD^® Pre Ship Audit leverages all the capabilities of IDEA^® and LoanHD^® audit technology to drive significant advantages
for sellers:

Lower suspense ratios and improve warehouse velocity.

When selling loans to aggregators and correspondent investors, evalua-tion of loan quality prior to delivery can not only save time but improve the profitability of the transaction. Lower suspense ratios avoid interest charges and improve warehouse line availability to support new loans.

Purified loan data, verified and validated through rules-driven automa-tion, highlights defects and audit worksheets provide quick access to relevant loan documents. A secure web portal supports the communica-tion of conditions to responsible parties and clears loans for sale.

Negotiate a better price.

High defects rates on loans delivered to correspondent investors not only create reputational risk, but also adversely impact the pricing received for these loans. High quality loan deliveries can avoid these issues and reap greater rewards from investors.

Global reporting across correspondent investors.

Robust loan quality reporting through the LoanHD^® platform helps sellers analyze loan quality defect trends across investors. This is far more effective than trying to merge inconsistent scorecards received from each. Standardized reports and custom report builder functionality provide insights to improve loan delivery.

LoanLogics HMDA Audit Automation Tools
A spectrum of solutions for HMDA compliance.

Regulators want to know your HMDA reporting process and see the policies and procedures you have in place are followed consistently on every loan, every time. Ensure such provable, repeatable testing is performed by using a highly automated, single page worksheet in LoanHD, to guide your auditors through an efficient, accurate loan file review.

To meet the compliance needs of all mortgage lenders, LoanLogics offers two solutions for HMDA reporting: LoanLogics^® HMDA Complete^™ and LoanHD^® HMDA DirectCheck^®.

LoanLogics HMDA Complete is a more robust offering for lenders with a heightened focus on data quality and consistency across documents and systems. This solution leverages IDEA^® (Intelligent Data Extraction and Automation) to provide a 360-degree view of loan file data by comparing the essential data from loan documents against loan origination (LOS) and other system data for the utmost accuracy in HMDA compliance reporting.

Alternatively, LoanHD HMDA DirectCheck is right for lenders who have a high confidence in their data from their LOS or other trusted source and a desire to lower the cost of HMDA reviews with automation.

Want a mix of both? Ask us about a HMDA hybrid solution which allows you to incorporate documents in a subset of your loan file reviews as a quality check.

Automate HMDA Compliance

Unlike manual ‘stare and compare’ processes that provide only a cursory review of loan file data, both LoanLogics’ HMDA compliance solutions use an automated system with a proprietary rules engine to cull through thousands of data points.

This process clears a majority of loans and goes on to systematically flag discrepancies, errors or missing information.

HMDA AUDIT TASKS AUTOMATED MORE THAN

Guided by a HMDA specific workflow, LoanHD audit automation red flags items that require manual intervention, greatly reducing time in file from hours to minutes. Auditors can quickly edit data right within the LoanHD HMDA worksheet. Users of HMDA Complete are also provided with one-click access to all the related data extracted from loan documents and other sources via LoanFacts^® to update the file accordingly. After the HMDA data is corrected, tests can be rerun and revisions made, including the calculation of rate spread.

Produce a comprehensive audit trail.

LoanLogics HMDA Complete and LoanHD HMDA DirectCheck both provide an audit trail of all rebuttals which is maintained right within the system and easily accessible to satisfy inquiries for regulator review.

Action Plan Reporting helps lenders track training programs or policy changes and provides evidence to regulators of proactive remediation efforts.

Lenders can also generate discrepancy reports to update loan origination system (LOS) data and create data integrity for future reporting.

Complete file reviews in Just

Minutes

Deliver a complete and accurate report.

Upon completion of HMDA file reviews, transformation and verification rules enable lenders to easily produce an export ready file of your loan activity report (LAR) for the purpose of streamlined delivery to the CFPB. But don’t stop there, with the purpose of understanding the story your HMDA data tells, leverage reporting analytics to analyze denial patterns, approval rate trends, pricing strategies and program opportunities.

Use the information that you’re required to collect to your advantage. The accuracy of your data is for the benefit of the industry, but also provides you valuable information for your own analysis and business process improvements. Taking a closer look at lending areas and examination of pricing adjustments can guard against disparate impact or the appearance of discriminatory practices.

Explore automated solutions for HMDA compliance audit accuracy.

Want direct experience with LoanHD^® HMDA DirectCheck^® before you buy? Submit your request for this Try Before You Buy Program to test drive our technology to review your HMDA data for completeness quality, and LAR generation.

To see the advanced capabilities of LoanLogics^® HMDA Complete™ in more detail, request a product introduction .

Be TRID confident with the LoanHD^® TRID Audit Tool.

Lenders risk fines, buybacks and dissatisfied borrowers without a sharp focus on TILA-RESPA Integrated Disclosures (TRID ) compliance. Gain confidence in your loan origination procedures by automating your pre and post close TRID quality assurance with the LoanHD TRID Audit Tool.

Granular detail for comparison.

Streamline data comparison efforts with advanced data extraction and presentation of granular detail for all versions of the Loan Estimate (LE) and Closing Disclosure (CD) forms in a single view. Auditors also have
one-click access to TRID related documents, including the Provider of Service List, Affiliated List and Change of Circumstance Letter (when applicable).

With data-driven automation, discrepancies are identified prior to file review. Side by side comparison of fees across all LE and CD versions enables auditors to verify and validate this information and denote a reason and date for any change in fees.

Integrated compliance testing.

Sharpen your focus on TRID compliance through the LoanHD platform’s integration with ComplianceAnalyzer, the mortgage industry’s most adopted automated compliance solution from ComplianceEase. Verified, validated loan file data is passed to ComplianceAnalyzer which then provides both summary and loan level compliance analysis that is dis-played in the compliance audit interface.

The full capabilities of LoanHD to then submit rebuttals and clear loan defects through the Audit Response Center keeps lenders in compli-ance.

TRID transparency.

Leverage an ecosystem of services that create efficiency and confi-dence. The LoanHD^® AppQ Network^® provides service ordering and delivery interfaces to third-party providers. Compliance analysis, credit reports, document management and more are accessible directly within the system.

Understanding the sources and causes of defects.

Reduce your risk by analyzing the trends in your compliance data. Findings can be tracked and evaluated within the LoanHD platform to identify the sources and causes of defects. Actions taken, such as internal communication, training and changes made to your TRID policies and procedures, can be monitored to measure the impact of process improvements.

Proven Results.