Firm touts one-year implementation of mortgage compliance system

Secondary market grasps how key due diligence is to the mortgage capital markets

Firm touts one-year implementation of mortgage compliance system

SitusAMC and LauraMac are touting the one-year anniversary of the latter’s implementation of the former’s ComplianceEase, an automated mortgage compliance system.

SitusAMC describes itself as the leading provider of innovative, trusted solutions supporting the residential real estate lifecycle while LauraMac calls itself the premier SaaS provider to the mortgage capital markets.

As it relates to the mortgage capital markets, much currency is placed on due diligence, quality assurance and loan compliance toward minimizing risk. In the absence of such systems, secondary market players run the risk of running afoul of local, state or federal laws and jeopardizing their investments. ComplianceEase integration aims to ensure such protective measures are firmly in place, executives told Mortgage Professional America in a recent interview.

Scott McNulla (pictured top), senior director regulatory compliance at SitusAMC, and Bob Fulton (pictured below), CEO of due diligence and QA provider at LauraMac, sat down with MPA to tout the fledgling yet successful alliance.

McNulla spoke to a key component of having a compliance system in place. “When a loan is originated, there are rules, laws, regulations, a lender has to comply with. Some of those do not carry what is referenced as assignee liability, which means the risk is really borne by the lender. So if the lender makes a mistake during the origination lifecycle, it doesn’t matter what happens to the loan afterwards. If there’s any pursuit by the consumer, it’s against that original lender. So, if the original lender didn’t provide, for example, a state level disclosure that is not deemed to carry an assignee liability, if there’s a failure to provide that, the consumer would go and litigate against that original lender.”

SitusAMC officials say more than 250 clients are currently leveraging ComplianceEase, which is estimated to have saved those clients more than 330 years of manual examiner work.

ComplianceEase is described as a web-based, automated compliance system that facilitates loan-level reviews to determine if a loan is compliant with federal, state and local laws and regulations. Findings are displayed in an interactive report that includes a proprietary RiskIndicator, which displays an overview of audit results in key risk areas with five levels of severity to allow easier identification of problem areas.

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Officials said ComplianceEase was integrated into LauraMac Review, a due diligence and quality assurance module within LauraMac’s enterprise capital markets system, one year ago. The integration enables users of LauraMac Review to run comprehensive, loan-level compliance reviews directly within the LauraMac platform, helping streamline and automate loan diligence and quality assurance processes, officials added.

Bob Fulton

“Integrating with ComplianceEase was a no-brainer,” Fulton said. “Our SaaS-to-SaaS relationship means faster results for our clients, and ComplianceEase is the gold standard when it comes to compliance.”

To date, officials said, ComplianceEase has completed more than 90 million loan audits. Users of the LauraMac platform have successfully reviewed over 23,000 loans as a result of the ComplianceEase integration, they added.

The SitusAMC-ComplianceEase alliance dates to 2020, when the former announced its acquisition of LogicEase Solutions, the parent company of ComplianceEase. As part of the deal, ComplianceEase operates as a wholly owned subsidiary of SitusAMC.

“This acquisition is an important step in our goal of bringing greater automation and transparency to the residential market,” SitusAMC CEO Michael Franco said at the time. “The combination of the ComplianceEase product set and our existing technologies enhances our position as a leading technology provider for the mortgage industry. Clients that fully participate in our ecosystem of solutions will ultimately be able to reduce secondary market trading diligence from days to minutes.”

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SitusAMC’s technology portfolio includes systems of record for the custodial and warehouse space (emBTRUST and ProMerit); product, pricing, and eligibility for loan conduits (The Rate Lock System); document classification and data extraction (Acuity); document management (DocAcuity); and loan accounting (SBO.NET).

“SitusAMC was a logical choice for us given the company’s expertise in regulatory compliance requirements and passion for innovative technology,” John Vong, founder of ComplianceEase, said at the time of the acquisition.