As the quantity of laws and regulations increases across the county, the cost and complexity of regulatory compliance continues to grow for most mortgage lenders. Lenders and mortgage-backed securities issuers alike across the nation are increasing their search for effective enterprise risk mitigation solutions — in fact, some sources have suggested to HW that risk mitigation, including fraud management, is one of the key aspects that will enter into restoring the battered secondary market. ComplianceEase, a provider of automated compliance solutions for the residential mortgage industry, said Tuesday that its ComplianceAnalyzer PLUS platform — which the company touted as “the first and only” regulatory compliance risk mitigation solution to combine an automated compliance system with a loan-level insurance-backed warranty — has been expanded to include coverage for Federal Truth-in-Lending regulations, as well as for certain state license-based consumer credit laws and regulations. “Because of our unique involvement with state regulators, we have been able to work with our insurance partners to broaden the CA+ coverage across the board, from the Federal to the state level,” said John Vong, president at Compliance Ease. “This is a great safety net for every lender to have and provides peace of mind in a turbulent market.” ComplianceAnalyzer PLUS protects against regulatory compliance losses of up to $250,000 per loan, and an expansion of the insurance/warranty program tied to the platform means that users are covered against losses associated with fines, settlements, refunds, and related costs resulting from loan-level issues with the Federal, state, and municipal high cost/predatory lending, Truth-in-Lending, and state consumer credit laws and regulations tested by ComplianceAnalyzer. The platform’s compliance/insurance hybrid also covers losses from compliance violations that affect secondary market transactions, which can potentially result in costly loan repurchases, the company said in a press statement. It’s an interesting model that could serve to insulate lenders and market participants from increasing market risks tied to compliance management. “What we are seeing now, in light of the issues in the market that have unfolded over the last 12 months, is an increased focus on other consumer-centric issues that impact mortgage lending, such as prepayment penalties, disclosures and prohibitions on certain types of lender and broker compensation,” said Donald Lampe, partner at Womble Carlyle Sandridge and Rice, PLLC, whose capital markets practice represents many of the nation’s largest issuers. For more information, visit http://www.complianceease.com.

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