LoanLogics introduced HMDA Audit, a new module for the company’s LoanHD Loan Quality Management platform that helps lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA) taking effect January 2018, the company announced in a press release.
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 CEO/President Brian Fitzpatrick said in the 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.”
Another important feature of this 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 can not only validate the data in the loan origination system, they can also calculate rate spreads, rounded loan amounts and geocodes, the release said.