ComplianceAnalyzer Offers Protection to Help Restore Confidence in Mortgage-backed Securities Market

April 28, 2008 - PRLog -- Carlsbad, CA  – ComplianceEase®, the nation’s leading provider of automated compliance solutions for the residential mortgage industry, today announced at the Mortgage Bankers Association’s Legal Issues and Regulatory Compliance Conference that ComplianceAnalyzer® PLUS (CA+), the first and only regulatory compliance risk mitigation solution that combines an automated compliance system, ComplianceAnalyzer®, with a loan-level insurance-backed warranty, AssureCert®, has been expanded to include coverage for Federal Truth-in-Lending regulations as well as for certain state license-based consumer credit laws and regulations.

“Because of our unique involvement with state regulators, we have been able to work with our insurance partners to broaden the CA+ coverage across the board, from the Federal to the state level, taking the regulatory risk mitigation solution to the next level. This gives lenders and securities issuers unprecedented protection.  And most importantly, it is affordable; it only costs around $2 for $25,000 of coverage.  This is a great safety net for every lender to have and provides peace of mind in a turbulent market,” explained John Vong, president of ComplianceEase.

ComplianceAnalyzer PLUS protects against regulatory compliance losses of up to $250,000 per loan*, making it the most innovative and comprehensive compliance risk protection available.  The newly-expanded AssureCert now covers losses associated with fines, settlements, refunds, and related costs resulting from loan-level issues with the Federal, state, and municipal high cost / predatory lending, Truth-in-Lending, and state consumer credit laws and regulations tested by ComplianceAnalyzer. The scope of consequences that originators can protect themselves against has expanded accordingly to include monetary risks from rescission, examiner fines and penalties and costs to cure defects. AssureCert also covers losses from compliance violations that affect secondary market transactions, which can potentially result in costly loan repurchases. The unique warranty even covers the potential for differences in interpretations of laws and regulations that are covered by ComplianceAnalyzer audits. Claims can be made up to five years after certificate issuance and are transferable to third parties (investors / loan servicers), making it the only available solution for secondary market investors, bond issuers, and other financial institutions to specifically target the monetary risk of non-compliance with Federal and state regulations.

Donald Lampe, partner at Womble Carlyle Sandridge and Rice, PLLC, elaborated on the compliance risks lenders face.” Of course, high-cost loans remain a major concern for the residential mortgage market, from the standpoint of regulatory risk as well as the ability to sell loans to investors. However, what we are seeing now, in light of the issues in the market that have unfolded over the last 12 months, is an increased focus on other consumer-centric issues that impact mortgage lending, such as prepayment penalties, disclosures and prohibitions on certain types of lender and broker compensation. It makes perfect sense to leverage CA+ audits for true monetary protection against the additional financial risks that this broader set of regulations imposes, including refunds to borrowers and fines from examinations.”

As the quantity of laws and regulations increases across the county, the cost and complexity of regulatory compliance continues to grow. In the meantime the market is struggling to get back on track. As a result, lenders and mortgage-backed securities issuers across the nation are increasing their search for effective enterprise risk mitigation solutions in order to transform these regulatory burdens into competitive advantages. CA+ will play a key role in helping to restore confidence in the mortgage-backed securities market.  ComplianceEase actively monitors market needs and trends, continuously enhancing the ComplianceAnalyzer PLUS coverage to provide comprehensive protection to better alleviate the regulatory risk and legal consequences that financial institutions can face.

* Base coverage level of $25,000 may be increased through optional upgrades.

About ComplianceEase
ComplianceEase, a division of LogicEase Solutions Inc., headquartered in the San Francisco Bay Area, is a premier provider of intelligent business solutions to the financial services industry. ComplianceEase's web-based platform, ComplianceAnalyzer, is the mortgage industry's only patented automated compliance solution. The ComplianceEase expert system utilizes advanced reasoning and decisioning technologies as well as natural language processing to power beginning-to-end solutions in a fraction of the time and for a fraction of the cost of traditional approaches, while providing high levels of accuracy and integrity. ComplianceEase's client base includes top tier mortgage lenders, banks, and Wall Street firms. The company is managed by a team of highly experienced and innovative mortgage professionals, and is funded by the First American Corporation, the WI Harper Group, and the senior management team. For more information about ComplianceEase, please visit ComplianceEase.com.  

Press Contact
ComplianceEase
Nina Travinsky
(650) 373-1111 ext. 1122
n.travinsky@complianceease.com

Website: www.complianceease.com