DataQuick Boosts Reg Z Compliance with Valuation Software Report Function

MDA DataQuick updated its collateral risk management software to provide more detailed reports of property valuations when a lender makes the decision to adjust a borrower’s equity line of credit. Regulation Z, also known as the Truth in Lending Act (TILA), requires lenders to supply detailed documentation when freezing a borrower’s line of credit. In a press statement announcing the updated software, Delaware-based DataQuick said providing that additional information can be a burden to lenders, especially when the decision to adjust a home equity line of credit (HELOC) is driven by computer software. The new feature on the software creates a report that provides the data to justify the automated decision in what DataQuick called “an easy-to-read format.” The report includes market value, home price index (HPI) trending other supporting property information to help automate the valuation review and reconciliation process, DataQuick said. “In today’s market, lenders and servicers are in need of data and analytics that enable them to quickly and accurately value collateral,” said John Walsh, president of MDA DataQuick. “By automating the valuation reconciliation process, our Collateral Validation tool lets users continually monitor performance, customize reports and make informed decisions regarding which properties are candidates for adjustments, modifications, workout or short sale.” In addition to the new report features, the DataQuick software includes a forecast, which provides servicers with the projected market value of the property for the next 30, 60 or 90 days. Those forecasts are based on DataQuick’s automated valuation model (AVM) that provides real estate and sales data localized down as far as a ZIP+2 code. Since revisions made to Regulation Z and the Real Estate Settlement Procedures Act (RESPA) took effect at the beginning of 2010, lenders have faced challenges updating software and processes from decades-old disclosure policies. Wolters Kluwer Financial Services launched a self-help website, while some settlement service software companies say the change has been a windfall for new business. Write to Austin Kilgore. Want more information on mortgage tech? Be sure to check out the latest edition of the HW Focus supplement series, included free with in July’s edition of HousingWire magazine. Don’t receive HousingWire? Subscribe today.