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Two Tech Vendors Expand Alliance Offering more TPO controls. By Anthony Garritano At a time when mortgage lenders are looking at every aspect of their business for possible improvements and cost savings, ComplianceEase here and Guardian Mortgage Documents have expanded their three-year strategic alliance to offer more robust risk management tools for large investors, which will enhance compliance services for correspondent and broker quality control procedures. Specifically, ComplianceEase, a provider of mortgage industry automated compliance and risk management solutions, and GMD, a provider of document preparation, have jointly developed a unique seamless interface solution for one of the top five mortgage investors in the United States. The new solution combines compliance and document production into a "one-touch," Web-based workflow system, which is available to third-party originators from the investor's Web portal. The system allows correspondents and brokers to perform effective real-time, loan-level compliance audits that verify adherence to the investors' guidelines and compliance. The new system is unique in that it increases investor loan quality by generating closing documents only when all defined compliance thresholds have been met. "We've had a relationship for three years," said Tim Anschutz, vice president of marketing at GMD. "We're pushing it forward in that we put together a tighter interface. A large investor came to us and ComplianceEase looking to tie down control and delivery. Guardian has an existing portal where our sellers go to in order to draw docs. ComplianceEase defines the thresholds on the compliance and what is delivered to the investor. "When a correspondent requests docs we pass that to ComplianceEase for checks and if it does not meet the mark the correspondent does not get docs, they get a report explaining what they need to do. A differentiating factor is that they don't get docs at all if they don't meet the threshold. If it does meet the threshold they still get a ComplianceEase report. "We can lock down any field on behalf of the lender or investor," noted Mr. Anschutz. "For example, if these 20 fields shouldn't be touched we can lock those down so investors know what they're getting at all the time." "For some investors buying third-party-originated loans, data checking is lacking," added Jon Vong, president of ComplianceEase. "Manual auditing is very time consuming for them. So, we pushed this down to the originators that they have relationships with. We can instantaneously provide an audit result. Most of the times everything will be OK, but for those that have issues we can stop the docs and provide a set of things that need to be done. "We're in the background. When there is a Web service request that comes to us we send a report back into the Guardian platform. In the last 12 months even conservative lenders have gotten repurchase requests. Lenders want to mitigate the risk associated with both fraud and compliance. If they want to continue to stay in business they have to mitigate their risk exposure." Are more lenders looking to use this technology at the point-of-origination? "Given the backdrop of what is happening today this is about as far upstream as you can go," answered Mr. Anschutz. "It's early in the process and based on the people that I've talked to, the ability to have that control is terribly important. We're already talking to other investors about this. "There is no hassle factor for the third-party originator and they get a level of confidence here. If you are a correspondent or a broker this is very powerful because you get a lot of value without having to do anything at all." "This integration will set a de facto standard," concluded Mr. Vong. "The lender wants a clean, compliant loan. Top-tier lenders and investors are increasingly open to finding solutions for the compliance problem. This will set an example for the industry. This is an important message."

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