Mavent Inc., a provider of automated regulatory compliance solutions to the mortgage industry, has updated its automated compliance engine to reflect the immediate addition of new high cost thresholds and other fee and prepayment penalty restrictions promulgated by the Kentucky General Assembly.
Unlike most legislation, which typically provides a three-to-six month window between enactment and effective date, HR 552 is immediately effective upon the signature of Gov. Steve Beshear, D-Ken. Those institutions that do not maintain a dedicated, cross-functional team responsible for maintaining their compliance systems risk funding loans that do not comply with HR 552, Mavent says.
‘This is an example of Mavent's value. Especially in this environment, most lenders cannot marshal all the moving parts needed to keep their systems current with abrupt regulatory changes,’ says Louis Pizante, CEO of Mavent. ‘While Mavent's clients are funding Kentucky loans today, many other lenders are debating whether to suspend their business or risk making non-compliant loans.’
HR 552 is all the more challenging to lenders because of its timing, the last Thursday of the month. The final week and last Friday of each month are when most loans are scheduled to fund, Mavent notes.
Mavent's automated compliance engine reviews mortgage loans in less than five seconds for compliance with over 300 federal, state and local consumer protection laws, the company adds.