Solutions | State Mortgage Laws

Real-time Review of State Mortgage Compliance Laws

With more than 30 states having enacted anti-predatory lending legislation, many lenders have already devoted significant time and resources to monitoring and complying with state legislation. In addition to the regulatory and reputational risks associated with making high cost loans, nonperformance and foreclosure concerns on the secondary market have increased lender’s due diligence responsibility. Lenders and investors are now looking closely at other state regulatory requirements for usury and fee limits. Any overages on these limits may result in a loss in portfolio value.

The State Rules module of Wiz Sentinel was created to help customers proactively identify and respond to changing compliance laws.

The module’s legislation tests verify that each loan is checked against state regulations in which the loan originated for the following items:

• maximum interest rate or APR
• fee restrictions as to which fees may be charged in a particular state as well as limits on lender retained, third party, prepayment penalty, NSF, late and broker fees
• marital signature requirements

These tests are applied by license type and also consider product– enabling users to ensure compliance, test against requirements in preparing for a potential move to a new region, and plan lending strategies by identifying which products are most profitable in different areas.

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