Who: Leslie Kromke, Mortgage Officer, First Bank Mortgage, Augusta, GA.
When: ConformX customer since 2006, added PredCheck in May 2009
What: Due to increased regulatory pressure on higher cost loans (HCL) and predatory lending, First Bank Mortgage (Augusta, Ga.) sought a new software system to improve the accuracy and speed of their compliance checks. The lender selected PredCheck, a Web-based program offered by Interthinx and hosted within DocuTech’s ConformX loan document program. Using PredCheck, First Bank Mortgage has eliminated inaccurate data reentry and reduced the time borrowers must wait at the closing table waiting on compliance checks.
With revisions to the Real Estate Settlement Procedures Act (RESPA) and Home Mortgage Disclosure Act (HMDA) going into effect in late 2009, lenders are faced with more complex rules and regulations concerning higher-cost and predatory loans. To help lenders meet this challenge, Idaho Falls, Idaho-based DocuTech, a provider of document compliance services, partnered with Agoura Hills, Calif.-based Interthinx to provide PredCheck, a customizable higher cost loan and predatory lending compliance tool.
At the same time, Augusta, Ga.-based First Bank Mortgage, a user of DocuTech’s ConformX since 2006, had reached the breaking point with their previous provider of HCL and predatory lending checks.
“The old system was very manual,” said Leslie Kromke, mortgage officer for First Bank Mortgage. “We literally had to enter everything from the final HUD report into the system, which created a huge margin of error. Since the final HCL and predatory lending check is run at the closing table, we had to find another method that would not leave our customers wasting time waiting on a computer program to run.”
Because First Bank Mortgage had successfully been using DocuTech’s ConformX, they gave the PredCheck integration a test run and kept the program following the trial period.
DocuTech and Interthinx’s PredCheck is a Web-based higher cost loan and predatory lending tool that compares loan-level data to applicable laws, regulations and investor requirements. The system is configurable, and First Bank Mortgage was able to begin testing against federal, state and local anti-predatory lending guidelines right out of the box.
“Since compliance HCL and predatory lending regulations is critical to ensuring a loan can be legally closed, we ran PredCheck on a test-level in parallel to our old system for the first couple of months,” Kromke said. “PredCheck had no problems and outperformed the old system in every way.”
PredCheck integrates into ConformX, which is a Web-based document compliance system, and pulls the loan data directly, eliminating the need for manual reentry. Once the checks are run, the system prepares reports and prints them for borrowers, regulators and the lender’s own files, all within seconds.
Kromke added that the implementation and integration between DocuTech’s ConformX and Interthinx was flawless. Kromke said the programs work together so well they appear to be one piece of software.
According to Kromke, the most significant benefits to using PredCheck are the speed of the system and the accuracy of its compliance checks. Through this partnership, First Bank Mortgage has been able to improve their customer service quality to their customers, because of the timesavings realized with ConformX.
“The old system added more than five minutes to the end of each closing,” Kromke said. “With HCL/PredCheck, we can run the compliance checks and generate the reports in less than a minute.”
As a result, the lender can concentrate more energy and resources on the company’s core business ““ closing loans.
Kromke also said the improved accuracy saves the lender potential regulatory punishments or loans returned by investors.
“In addition to the regulatory agencies, investors run their own checks to ensure compliance with HCL and predatory lending laws,” Kromke said. “PredCheck makes it easy to generate the reports we need to prove compliance on all loans and improve our cash flow with increased sales on the secondary market.”
Kromke also praised Interthinx’s and DocuTech’s customer service as a key reason the partnership has worked so well.
“The attentiveness that we receive is an additional bonus that is unmatched,” Kromke said. “When we have questions, we’ve been able to quickly get answers each time we call.”
About First Bank Mortgage
First Bank Mortgage, a division of First Bank of Georgia, is a residential mortgage lender based in Augusta, Ga. First Bank Mortgage funds loans in seven states in the southeastern United States. For more information, please visit www.fbmtg.com.
Since 1991, DocuTech Corp. (DocuTech) has provided outstanding compliance services and documentation technology for the mortgage industry. DocuTech offers closing documents, initial disclosure documents, borrower doc delivery and integrated compliance checks. They manage and secure all information needed for a loan, guaranteeing accuracy, security and compliance. For more information, visit www.docutechcorp.com.
Download First Bank Mortgage PredProtect Case Study as an Adobe PDF File