Brooks Systems, a provider of technology for the residential finance industry, has recently started offering electronic testing to help lenders meet Qualified Mortgage standards set by the Consumer Financial Protection Bureau.
Brooks Systems says its Web-based application, BrooksWebCalcs, embedded with High Cost Loan Analysis, uses technology to ensure loans are 100% compliant with all federal, state and local lending regulations.
The product saves lenders time and money by reducing errors and increasing cost controls, the company says, and it tests and verifies the following:
áÂ Â Debt-to-Income Ratio is less than 43%;
áÂ Â The loan is within tolerance;
áÂ Â Points and fees do not exceed specified limits for the loan amount;
áÂ Â Loans meet all Fannie Mae and Freddie Mac requirements;
áÂ Â Regulations regarding higher priced mortgage loans are met; and
áÂ Â Requirements regarding amortization, interest-only and balloon loans are met.