New Platform for Compliance Review Launched

Mortgage software provider QuestSoft is revamping its partnership with compliance solver Mavent Inc. in response to the rapidly changing regulatory landscape specifically in the secondary market. The new product will be launched on one platform, the companies say. The partnership, which was first announced in 2004, will continue to pair QuestSoft’s Compliance EAGLE with Mavent’s rules-based enterprise application as part of a comprehensive end-to-end compliance solution that identifies regulatory exceptions throughout the origination life cycle for improved loan quality. The increased focus by secondary market investors on compliance has led to integration improvements, so correspondent sellers can now access extensive compliance reviews from QuestSoft and Mavent on one platform. Major investors, such as Fannie Mae and CitiMortgage, use Mavent’s engine. “The current dislocation in the mortgage market, onslaught of stricter regulatory requirements and budgetary constraints makes an effective automated compliance solution more critical than ever before,” said Louis Pizante, chief executive officer of Mavent. “The key to making loans attractive to the secondary market and preventing loan buybacks is compliance,” said Leonard Ryan, president of QuestSoft.  “Lenders are working with a more concentrated staff, and they face an increased number of regulations, more stringent lending legislation and investors that request buybacks.  In order to continue successful and prudent lending, they must turn to automated compliance, which gives investors the assurance that each loan meets every necessary requirement.” Mavent and QuestSoft’s partnership eliminates the need for their customers to perform data re-entry and manual manipulation of information between different fields, allowing them to save time, improve workflow and allocate resources elsewhere within the organization, the companies said.  The compliance suite provides up-to-the-second compliance with current federal, state and local regulations in effect at the time of the request, including pre-purchase and post-closing compliance checks as well as verification of pre-payment penalty collection. Write to Kelly Curran at [email protected]. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.