LoanLogics, a loan quality management and performance analytics company, has introduced HMDA Audit, a new module for the company’s LoanHD Loan Quality Management platform that helps lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA) taking effect January 2018.
Under HMDA, lenders must collect and report demographic and geolocation data for all mortgage transactions and pre-approvals, whether the loans were funded or not.
According to LoanLogistics, HMDA Audit helps lenders ensure that all HMDA data associated with originated and non-originated loans is accurate and validated for compliance. It also provides lenders with a comprehensive audit trail that can be readily accessed for use with regulators.
“With loan costs at all-time highs, lenders need to find an efficient way to collect and report all data required for HMDA reporting,” says Brian Fitzpatrick, president and CEO of LoanLogics. “By automating quality control checks of their HMDA data with our new HMDA Audit module, lenders can gain peace of mind that the data they report to regulators is consistently complete and accurate.”
The company explains that HMDA Audit offers comprehensive functionality lenders can use to validate and update their HMDA data, including advanced geocoding tools (RATA and/or FFIEC). Geocode information is initially populated based upon loan origination system data or can be run during the loan boarding process.
If information is missing or changes are made to the property location fields, the user can update the geocode information with the click of a button, the company says. Further, an interactive map can also be used to find a location and generate the codes needed, which are then displayed in the HMDA worksheet.
LoanLogistics goes on to note another feature of this new tool is the HMDA Audit Screen, which displays the results of automated tests and tests that require manual intervention. Users can focus on findings related to eligibility defects and review tests that did not pass automated validation. Rules can be reprocessed when loan attributes change to update the audit screen. As reported, users can not only validate the data in the LOS, but also calculate rate spreads, rounded loan amounts and geocodes.