Carlsbad, Calif.-headquartered ComplianceEase, a provider of automated compliance solutions for the residential mortgage industry, says that ComplianceAnalyzer PLUS (CA+), the first and only regulatory compliance risk mitigation solution that combines an automated compliance system, 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.
CA+ protects against regulatory compliance losses of up to $250,000 per loan, the company notes. The newly expanded AssureCert now covers 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 scope of consequences that originators can protect themselves against has expanded accordingly to include monetary risks from rescission, examiner fines and penalties and costs to cure defects.
AssureCert also covers losses from compliance violations that affect secondary market transactions, which can potentially result in costly loan repurchases. The unique warranty even covers the potential for differences in interpretations of laws and regulations that are covered by ComplianceAnalyzer audits, the company adds. Claims can be made up to five years after certificate issuance and are transferable to third parties (investors/loan servicers).