Mavent Inc., a provider of automated regulatory compliance solutions to the mortgage industry's largest lenders and investors, has implemented changes to its system based upon New York's latest subprime lending reform bill that will take effect Sept. 1.
New York Gov. David A. Paterson has signed into law Bill 8413-A, which is intended to strengthen consumer protections under New York's banking regulations and provide assistance to New Yorkers facing foreclosure. The new changes introduce new loan-term restrictions and ability to repay requirements for high-cost and subprime loans, along with new foreclosure process requirements.
‘Budgetary and resource constraints can make complying with swift changes like New York's regulation difficult,’ notes Louis Pizante, CEO of Mavent. ‘Mavent creates value for its clients by providing them with accurate and up-to-date compliance controls at a cost that is less than what it would take to maintain those controls internally.’
Mavent says its team of in-house attorneys and nationally recognized credit law firms work to continuously identify and monitor new legislation so that client notifications and system updates can be made in advance of regulatory changes. In response to New York's regulation, Mavent's system will provide clients with exception messages when certain thresholds are triggered and the terms of the loan do not conform to the new lending requirements in that state.