Cypress Software Systems says it will offer consulting services, as well as enhanced versions of its Mark IV automated loan software and Mark IV Mortgage Module, to help financial institutions achieve compliance ahead of the Oct. 1 Regulation Z – Truth In Lending Act deadline.
The regulation focuses on the new average prime offer rate, which will replace the Federal Reserve's Treasury rate to determine rate spreads for Home Mortgage Disclosure Act reporting and identify new higher-price mortgage loans (HPML) based on a regulatory-defined threshold for first and subordinate liens.
Once an HPML is identified, new underwriting requirements are needed to ensure the borrower's ability or capacity to repay the loan, including verification of income based on written documentation, consideration of mortgage-related obligations in the repayment capacity analysis and forecasting the highest payment within the first seven years of an adjustable-rate loan into the repayment capacity analysis.
Updates to Mark IV and the Mark IV Mortgage Module are designed to present these changes in an intuitive interface that helps loan officers manage loans from application entry, through underwriting and decisioning.
SOURCE: Cypress Software Systems