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Metavante Releases FHA Compliance Technology
By James Comtois
MILWAUKEE-According to the Federal Housing Administration, twice as many people with subprime loans are refinancing into government-insured FHA mortgage loans. These types of loans are also ideal for first time homebuyers and those who may have less than perfect credit.
As a means of enabling lenders to take advantage of this new business opportunity, Metavante, a provider of banking and payments technology here, now offers support for new FHA compliance regulations.
"Lenders can capitalize on the resurgence of FHA loans in the marketplace provided they have support from their technology vendor to meet newer and more stringent compliance requirements," said Cy Brinn, president of Metavante Lending Solutions. "Metavante's timely FHA updates are designed to provide automated origination capabilities to mitigate risk and provide additional operational efficiencies for FHA loan originators. For the past 10 years, Metavante's mortgage Loan Origination Studio has supported its clients in handling a significant volume of FHA loans in accordance with applicable government regulations."
Metavante's LOS supports the FHA Loan Transmittal, the Maximum Mortgage Worksheet for 203k and 203k Streamline loans and the Mortgage Credit Analysis Worksheets for purchases and refinancings. Metavante's LOS also supports components of the FHA Modernization Act of the Housing and Economic Recovery Act of 2008, as well as the minimum cash investment requirement and maximum combined loan-to-value changes.
Metavante's LOS provides lenders with the platform to take their government loans from application through funding and beyond to insuring and loan guaranty.
"Our goal is to assist lenders with the increased demands of FHA underwriting by providing updated compliance tools and documentation necessary to make it a viable revenue stream in an increasingly challenging mortgage industry," Mr. Brinn added. "The new FHA lending programs present an excellent opportunity for banks to drive new loan volume."
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