ComplianceEase Can Now Be Used to Audit HELOCs


ComplianceEase, a provider of automated compliance solutions to the financial services industry, reports that its flagship platform, ComplianceAnalyzer, is now able to audit home equity lines of credit (HELOCs) for state licensing requirements in most states.

ComplianceAnalyzer with TRID Monitor has already been able to audit closed- and open-end mortgages for federal, state and local requirements, including TRID compliance, and for state predatory lending issues for some time.

Now, the system allows non-banks, banks and credit unions to audit all liens in most states in which they are licensed.

Currently, the system covers more than 80 licensing types in the 42 states that account for more than 90% of home equity originations in the U.S.

Depending on the state license, the system can test HELOC originations for interest rates, restricted fees, late fees, grace periods and prepayment penalties.

“According to TransUnion, approximately 5.5 million HELOCs were originated in the last five years, and that number could rise to 10 million over the next five years,” says John Vong, president of ComplianceEase, in a release. “With rising home prices creating equity, one estimate says that 44 million homeowners now have more than $6 trillion in ‘tappable’ equity and could be candidates for home equity lines and loans.

“Not surprisingly we are seeing a growing interest from banks and now non-banks in this category,” Vong adds. “From a compliance perspective, however, the patchwork of different state regulations for both real estate and consumer lending has presented challenges for lenders with multi-state footprints.

“Our new enhancements to ComplianceAnalyzer mean that lenders can now use their preferred system for first mortgage compliance to reduce exposure to potential state licensing rules for HELOCs as well,” Vong concludes.

Notify of
Inline Feedbacks
View all comments