Mortech, a Zillow company offering technology to mortgage lenders and servicers, has added new Consumer Financial Protection Bureau (CFPB) compliance tools to its Marksman product and pricing engine.
These new tools will enable loan originators to manage compliance upon intake, prior to the deal entering the loan origination system, the company reports.
‘Fair lending and compliance have been a significant focus for Mortech during the past year,’ says Tom Erickson, mortgage industry and compliance specialist for Mortech, in a release. ‘What began as a suite of compliance checks and tests has grown into a full-blown compliance management system, just in time for the new rules that the CFPB will implement next year.’
Now, the Marksman product offers several new compliance checks specific to the CFPB's qualified mortgage (QM) rule, including the following:
- Annual percentage rate/average prime offer rate check spread;
- Applicable debt-to-income ratios;
- Lender fees and points calculation; and
- Non-qualification due to loan risk.
Users of the system are notified immediately whether a loan passed or failed the QM test by way of color-coded icons that appear on screen. This way, lenders can see which portions of the deal passed or failed and the calculations used by Marksman to make this determination.
In addition to QM tests, Marksman also provides a complete set of fair lending tests, checks for higher-priced mortgage loans and a workflow for anti-steering, where the loan officer can view and print an anti-steering disclosure form.