Irvine, California-based ""Mavent Inc."":http://www.mavent.com/, a provider of automated regulatory compliance software and solutions to the mortgage industry, has unveiled a new automated compliance engine (ACE) that reviews loans for compliance and eligibility under the Obama administration’s Making Home Affordable program.
According to Mavent, lenders and servicers using the new software can submit loan data and receive a detailed report in seconds that identifies and describes issues relating to consumer protection violations; Fannie Mae and Freddie Mac predatory lending guidelines; and the Treasury’s Home Affordable Refinance and Home Affordable Modification program eligibility.
Louis Pizante, CEO of Mavent, said that the company's Making Home Affordable ACE is designed to help lenders, loan servicers, investors, and borrowers’ agents ensure working Americans can afford to stay in their homes. ""The regulatory and program requirements surrounding Obama’s mortgage plan are complex,"" Pizante explained. ""Mavent provides an inexpensive and expedient way of ensuring compliance, so that clients can focus all their resources on executing successful refinancings and loan modifications immediately.""
Mavent’s Making Home Affordable ACE evaluates loans for compliance with over 330 consumer protection laws, including the ""Truth In Lending Act"":http://www.mavent.com/reviews/tila.htm (TILA), the ""Home Ownership and Equity Protection Act"":http://www.mavent.com/reviews/hoepa.htm (HOEPA), and ""state predatory lending laws"":http://www.mavent.com/reviews/statereview.htm. Loans that violate these regulations can result in rescission (effectively the borrower’s right to cancel the loan), defenses to stop foreclosure, and statutory damages that can greatly exceed the value of the loan.
Mavent further evaluates each loan to make sure that it can be sold to Fannie Mae and Freddie Mac under their compliance rules. If a loan does not meet Fannie Mae’s or Freddie Mac’s unique abusive lending guidelines the seller can be forced to buy back the loan. Mavent said it has worked with both Fannie Mae and Freddie Mac to ensure an accurate review of loan information for compliance with their specific tests.
Mavent finally evaluates the loan to ensure compliance with critical aspects of the eligibility requirements of Fannie Mae’s Refi Plus and DU Refi Plus, Freddie Mac’s Relief Refinance Mortgage, and the Treasury’s Home Affordable Modification programs.