Lenders Compliance Group forms Compare Ratio Task Force®

Feb. 25, 2010 - PRLog -- Lenders Compliance Group, Inc., the national mortgage risk management firm, has announced formal activation of its Compare Ratio Task Force®. Staffed by subject matter experts and the firm’s own attorneys, this task force handles the initial regulatory reviews to assure borrowers’ loss mitigation eligibility, assigns preferred, outside legal counsel especially chosen to implement the program’s loan modification guidelines, and follows up with mortgage servicers to remove a lender’s FHA default and claim codes.

The Compare Ratio itself is a numerical value, used by the Department of Housing and Urban Development, that reveals the largest discrepancies between a lender's default and claim percentage and the default and claim percentage to which it is being compared.  Lenders with a Compare Ratio of greater than 200% are subject to disciplinary action, which can include termination of underwriting authority, and possible loss of FHA approval. Using 2009 year end data, approximately 10% of FHA lenders have Compare Ratios in excess of 200%, representing an extraordinarily high number of financial institutions with excessive mortgage defaults and claims.

“In response to this mortgage crisis of excessive defaults and claims, my firm developed a cost effective methodology to reduce an FHA lender’s Compare Ratio gradually over time. We organized our Compare Ratio Task Force® and staffed it in order to work closely with high Compare Ratio lenders, not only to bring down their defaults and claims rates but also to guide them in implementing new ways and means to avoid this problem in the future,” said Jonathan Foxx, President and Managing Director of Lenders Compliance Group.

The Compare Ratio Task Force® implements a Seven Step Program to reduce a lender’s FHA mortgage defaults and claims exposure. “Building this task force required a thorough review of federal and state banking laws,” said Mr. Foxx, “and our Seven Step Program ensures the necessary procedures and disclosures to protect both the public and the lender in their respective efforts to mitigate mortgage default risk.”

Unique features of the Compare Ratio Task Force® are auditing checklists and automated file screening systems, borrower loss mitigation solutions report, state-of-the-art quality control and modern research facility, access to the company’s Forensic Mortgage Audit® and Mortgage Fraud Audit® reports for Professionals, scalable capacity up to virtually any size portfolio of mortgage defaults and claims, uploading and downloading of large file formats, and all work performed in a secure and safe location.

Compare Ratio Task Force®: Click >> http://lenderscompliancegroup.com/61.html.

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Lenders Compliance Group, Inc. is the first and only full service, mortgage risk management firm in the country specializing exclusively in residential mortgage compliance. The firm provides complete mortgage risk management outsourcing to Mortgage Bankers, Mortgage Brokers, state and federally regulated banks and mortgage company subsidiaries, Mortgage REITs, Warehouse Banks, Correspondent Lenders, Wholesale Lenders, and FHA DE Mortgagees and Loan Correspondents. Outsourcing services include: Mortgage Compliance - Compliance Administration - Compare Ratio Task Force® - Forensic Mortgage Audit® - Lender Business Development - Quality Control - FHA Examinations - CORE® Compliance - State and Federal Banking Examinations - Fannie/Freddie/Ginnie Applications - Mortgage Due Diligence - Legal Reviews & Remedies - Mortgage Fraud Audit® - Loss Mitigation Compliance - HMDA & CRA Reviews - Statutory Licensing - Internet Security Compliance. Website: http://lenderscompliancegroup.com