Mavent, a provider of automated regulatory compliance solutions to the mortgage industry's leading originators and investors, has integrated with Orlando-based Digital Risk LLC, a risk mitigation solutions provider for the mortgage industry, to provide precise and efficient regulatory compliance risk management reviews.
Mavent provides automated regulatory compliance risk management services for originators, investors and servicers. The company reviews electronic loan data in less than ten seconds for compliance with nearly 300 federal, state and local laws. Mavent's review methodology considers how brokers and lenders are licensed or chartered when evaluating loans for compliance with regulatory requirements. The company's broad range of reviews include Truth in Lending Act (TILA), anti-predatory lending, usury limits, prepayment penalties, fee restrictions, and investor requirements (including Fannie Mae requirements).
Digital Risk provides portfolio risk mitigation and due diligence services to capital markets firms, lending institutions, fixed income investors and loan servicers. The risk mitigation suite addresses credit quality, collateral valuation, and fraud for thorough 360 degree portfolio risk analysis that assures execution certainty with the secondary and investment markets. As a result of this partnership, Digital Risk now offers the following Mavent compliance reviews:
- TILA calculations, tolerances and right of rescission analysis;
- Federal, state and local high cost thresholds;
- State consumer credit laws (beyond high cost);
- Lender and broker licensing; and
- The approved Fannie Mae points and fees test.
"Combining our financial performance technology with Mavent's automated regulatory compliance solutions will serve to enhance overall results," said Peter Kassabov, CEO and Managing Director of Digital Risk. "High-cost lending compliance is getting more challenging and extremely critical in the current environment of rising loan defaults. Every state is getting stricter on predatory lending laws and it is hard to keep track of all the new rules, regulations and idiosyncrasies." he added.
"Digital Risk has deep expertise in managing the many risks attendant to the mortgage business, including credit, collateral, interest rate and fraud risks," said Louis Pizante, CEO of Mavent. "Compliance has emerged as another fundamental risk mortgage businesses are required to address. But, unlike other risks, regulatory violations cannot be hedged or diversified away. Our relationship is a natural complement to Digital Risk's business and is providing their clients with a valuable service at a time when it is most needed."