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PCLender.com Issues 18-Point Comprehensive Compliance Checklist

(June 04, 2008)-- PCLender.com, a fully hosted web based software and services solutions provider to mid-sized mortgage bankers and financial institutions, has developed and issued a comprehensive 18-point checklist of mortgage banking compliance requirements to help lenders determine the adequacy of their process automation and management strategies to minimize compliance risk.

Including federal disclosure requirements covering initial application through data and identity security; state laws concerning brokering loans, license tracking and flood insurance; fraud, anti-terrorism and reporting oversight by government agencies; and secondary market and investor guidelines – PCLender’s comprehensive compliance checklist helps mortgage bankers’ manage their most critical responsibilities.

“Mortgage bankers operating in the post-meltdown era are under mounting pressure to meet proliferating, interdependent compliance demands,” said PCLender founder and CEO Lionel Urban. “As a service to its customers and to the industry, PCLender audited the current compliance landscape to ensure the robust and comprehensive compliance performance of its InHouse Mortgage enterprise mortgage lending and business process automation platform.”

According to Urban, comprehensive compliance expertise is an essential trait for vendors and service providers to the mortgage industry, and not just a burden of mortgage bankers. PCLender’s objective is to simplify the complexities of ensuring compliance at all phases of the mortgage lending process.

“Mortgage bankers that equip themselves with a comprehensive compliance checklist when evaluating current and prospective technology solutions have a leg up and are less likely to be disappointed,” said PCLender vice president for sales and marketing Sean Dugan. “PCLender InHouse Mortgage customers can be confident that their compliance bases are covered and their service provider is a proactive ‘big picture’ compliance expert.”

Federal mandates with an impact on mortgage bankers include the Community Reinvestment Act, Equal Credit Opportunity Act, E-Sign Act, Fair Credit Reporting Act, Fair and Accurate Credit Transactions Act, Flood Disaster Protection Act, Gramm-Leach Bliley, Home Mortgage Disclosure Act, Homeowner Protection Act, Homeownership and Equity Protection Act, Privacy Act, Real Estate Settlement Procedures Act, Sarbanes Oxley Act, Truth in Lending Act and, USA Patriot Act.

Government agencies and regulatory groups overseeing mortgage banking mandates include the US Department of Treasury, Department of Housing and Urban Development (HUD), the Federal Trade Commission, the Federal Bureau of Investigation, the Office of Foreign Asset Control, the Federal Financial Institutions Examination Council, and various state agencies.

PCLender tracked the following mortgage banking elements to isolate and identify specific compliance requirements: tracking new loan applications and action taken; initial application disclosures; loan closing disclosures; brokering loans; credit reporting access, disclosure, and tracking report sharing; flood zone determination, disclosure and reporting; mortgage insurance disclosure and termination requirements; providing appraisal reports; predatory lending and high cost loans; state licensing tracking; anti-terrorism and money laundering; loan fraud; HUD, agency and investor compliance; third party audits; reporting; protecting customers information; and data/file management, retention and disposal.

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