Hero Banner - Business - Solution - Mortgage Regulatory Solutions

Product Overview - Business -Solution - Mortgage Regulatory Solutions

More Compliant Mortgage Loans

Winning in today's mortgage market can be complicated, causing you to spend time and money on regulatory needs rather than customer relationships.  You need resources that can help you navigate the changing regulatory landscape and provide solutions that facilitate compliance.

More

Solution Expander - Business - Mortgage Regulatory Solutions

Learn More

Based on section 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), the rule requires businesses to implement a written Identity Theft Prevention Program to detect the warning signs—or red flags— of identity theft in their day-to-day operations. Increased scrutiny by the CFPB and ongoing audits and examinations have caused customers to re-evaluate their processes to better ensure they can prove compliance. Equifax provides off-the-shelf soltuions that help facilitate compliance with the Red Flags Rule and can help ease examinations and audits by automatically verifying, validating, and helping resolve identity discrepancies. 

Based on section 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), the rule requires businesses to implement a written Identity Theft Prevention Program to detect the warning signs—or red flags— of identity theft in their day-to-day operations. Increased scrutiny by the CFPB and ongoing audits and examinations have caused customers to re-evaluate their processes to better ensure they can prove compliance. Equifax provides off-the-shelf soltuions that help facilitate compliance with the Red Flags Rule and can help ease examinations and audits by automatically verifying, validating, and helping resolve identity discrepancies. 

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are launching a new representation and warranty (rep and warranty) framework for conventional loans sold or delivered on or after Jan. 1, 2013. The new model moves the focus of quality control reviews from the time a loan defaults up to the time the loan is delivered to Fannie Mae or Freddie Mac. This review process is time-consuming and expensive and slows down the loan manufacturing process. Credit, capacity and collateral data from Equifax via leading loan origination systems or fraud tools can help you better protect against repurchase risk.

Updated guidance was released about the computation of Allowance for Loan and Lease Losses (ALLL) for loans and lines of credit secured by senior and junior liens on 1-4 family residential properties. Failing to gather and consider reasonably available, relevant information could significantly impact management's judgment about the collectability of a portfolio and could be inconsistent with both GAAP and supervisory guidance. Equifax offers a combined credit and collateral valuation solution that helps address ALLL portfolio segmentation guidelines. It includes public record lien and credit data, consumer credit scores, a leading automated valuation model, and an owner occupancy indicator. Equifax is an industry leader in delivering the credit and collateral data necessary to help facilitate a comprehensive portfolio review process.

The Comprehensive Capital Analysis and Review (CCAR) is an annual exercise by the Federal Reserve to ensure that institutions have robust, forward-looking capital planning processes that account for their unique risks and sufficient capital to continue operations throughout times of economic and financial stress. In order to obtain approval for dividend increases or other capital distributions, mortgage lenders must gain access to reliable, timely property and credit data elements and deliver CCAR reports on time. Equifax is an industry leader in providing retrospective and current property and consumer-level data elements required to help facilitate compliance with CCAR reporting requirements.

Regulation Z allows for suspension, reduction, or termination of Home Equity Lines of Credit (HELOC) if the value of the collateral that secures the line experiences a significant decline in value. Lenders must continuously monitor property values, which adds time and expense to the overall account management process. By coupling an independently validated AVM with rich data that includes public-record lien, credit, FICO® score, and owner occupancy indicator, Equifax helps you reduce costs and time.

Over the next several years a significant number of home equity products originated in 2003 through 2007 will reach the end of their draw periods. Many banks will have issues refinancing borrowers into new HELOCs (and therefore new interest-only draw periods) because underwriting standards have tightened and housing values are generally lower than when the lines were first granted. Given these challenges, the Office of the Controller of the Currency (OCC) will be monitoring how lenders approach account management and loss mitigation programs; accounting practices such as troubled-debt restructure (TDR) recognition, income recognition, ALLL segmentation; and risk management issues such as oversight, reporting and quality control. With credit, employment, income and property data from one source, Equifax can help you better prioritize your efforts.

Contact Us - Leveraging Data on Consumers

Categorized Resources Expander