Parsippany, N.J.-based Secure Settlements Inc. has opened for business, with a focus on the vetting and ongoing monitoring of closing professional identity, background and credentials in order to reduce fraud, manage risk and meet recently mandated federal regulatory requirements. According to the company, it has developed a closing professional risk management program for the mortgage industry that verifies closing entities and individuals in real time and provides a standardized evaluation and reporting platform for mortgage lenders and warehouse banks.
‘The Consumer Financial Protection Bureau recently mandated a recommendation that has been in place since 2005, requiring all lenders to take affirmative steps toward evaluating third-party relationships and demonstrating that a policy is in place to protect consumers in regard to how they evaluate partners, such as closing professionals,’ says Andrew Liput, the company founder and an attorney with more than 20 years' experience in the loss mitigation and financial consulting industries. ‘Secure Settlements fills the auditing void left for many banks by the new regulations, empowering them with the information they need to best evaluate potential closing professional partners.’
While Secure Settlements stresses that it is not a licensing agency, it says that its process and proprietary database will help improve efficiencies in the lending process by creating a national pool of qualified and respected closing professionals who meet basic requirements, as well as a national watch list for high-risk individuals culled from law enforcement, public data and private industry sources. The Secure Settlements Watch List currently includes more than 45,000 names, and Liput hopes lenders will use this data as a pre-closing, pre-wiring quality control step for the benefit of consumers, investors and warehouse partners.