LoanLogics, a recognized technology leader in loan quality management and performance analytics, recently introduced HMDA Audit, a new module for the company’s LoanHD Loan Quality Management platform designed to help lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA), set to take effect in January 2018.
Under HMDA, lenders must collect and report demographic and geolocation data for all mortgage transactions and pre-approvals, whether the loans were funded or not. HMDA Audit helps lenders ensure that all HMDA data associated with originated and non-originated loans is accurate and validated for compliance. It also provides lenders with a comprehensive audit trail which can be readily accessed for use with regulators.
“With loan costs at all-time highs, lenders need to find an efficient way to collect and report all data required for HMDA reporting,” LoanLogics President and CEO Brian Fitzpatrick said in a press release. “By automating quality control checks of their HMDA data with our new HMDA Audit module, lenders can gain peace of mind that the data they report to regulators is consistently complete and accurate.”
HMDA Audit offers comprehensive functionality lenders can use to validate and update their HMDA data, including advanced geocoding tools (RATA and/or FFIEC). Geocode information initially is populated based upon LOS data or can be run during the loan boarding process. If information is missing or changes are made to the property location fields, the user can update the geocode information with the click of a button. An interactive map can also be used to find a location and generate the codes needed, which then are displayed in the HMDA worksheet.
Another feature of the new tool is the HMDA Audit Screen, which displays the results of automated tests and tests that require manual intervention. Users can focus on findings related to eligibility defects and review tests that did not pass automated validation. Rules can be reprocessed when loan attributes change to update the audit screen. Users not only can validate the data in the LOS, they also can calculate rate spreads, rounded loan amounts and geocodes.