Cogent Road, a provider of Internet-based applications for the mortgage industry, has added new compliance capabilities to Business Spaces, the company's document management system for loan officers. The compliance capabilities automatically ensure full conformity with the Equal Credit Opportunity Act's Regulation B (Reg B) and Truth in Lending Act's Regulation Z (Reg Z), Cogent Road says.
Created to monitor and track a loan's status, Cogent Road's Business Spaces automatically delivers adverse action letters (either electronically using all federal and state disclosure requirements or via first-class mail) and creates an audit trail for compliance officers when loans are manually declined within the lender's loan origination system (LOS).
Additionally, in accordance with Reg B, a loan file must be decisioned within 30 days of the application, whether complete or incomplete. To enforce compliance here, Business Spaces carefully tracks the loan process to determine whether the loan has been committed by underwriting within Reg B's allotted 30-day window. If not, Business Spaces automatically updates the LOS file and sends out the necessary adverse action letter.
To provide full compliance with Reg Z, which requires that loan disclosures be delivered to the applicant within three days of taking the completed application, Business Spaces enforces this timely requirement for the loan officer after the initial application is received. If disclosures are not sent within the necessary three days, the file is automatically considered to be in adverse action. The LOS file then gets updated, and a letter is sent out.
SOURCE: Cogent Road