QuestSoft Corp. has added a new digital compliance tool called LeadER to its Compliance EAGLE platform to assist lenders in the loan prequalification process.
The highly customizable tool allows lenders to check all applicable state and federal rate limits near-instantly. LeadER considers applicable index values to verify a loan would not be considered “high cost” to the borrower, QuestSoft said in a release. This should minimize mortgage lenders’ liability because it helps to ensure compliance with statutory thresholds for interest rates.
“Since the limits are typically based on index values such as APOR or TCM , plus some margin based on the loan data, there is often more than one jurisdiction in effect for any loan application,” said Frank Tuttle, software architect for QuestSoft. “Banks, private mortgage lenders and credit unions who have multi-state originations must dedicate a level of effort in a cost-effective manner to make sure they are not originating loans that violate the high-cost limit.”
LeadER also calculates and/or verifies APR and payment streams for multiple side-by-side quotes within the same review request. The tool can create calculations for all types of loans and supports all lien positions. According to the release, it can even be expanded for use in non-mortgage applications as needed.
“LeadER is a fantastic tool that helps a lender monitor lead pipelines daily to see potential red flags and fallouts,” Leonard Ryan, president and founder of QuestSoft, said in a release. “With this addition, now the entire pipeline – from leads, to sale on the secondary market – can be automatically managed by Compliance EAGLE, significantly reducing errors due to rate limit exposure and other mistakes.”