Analytics Software Aims to Detect Mortgage Errors

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The Consumer Financial Protection Bureau's new examination procedures for mortgage originations include strict quality controls for mortgage documents.

Among other things, examiners are charged with making sure the lender being audited is providing all required disclosures to the borrower at or before closing, including Truth-in-Lending disclosures, private mortgage insurance cancellation notices and privacy and opt-out notices. Examiners have to review a sampling of loan files to assess the bank's closing procedures.

New software from Medallion Analytics aims to help lenders get in front of this process. It looks for errors such as missing documents, poorly scanned documents and missing signatures. It compares data points in a loan document against a database to make sure the numbers match up.

The Medallion Vendor Scorecard software also can pool the individual loan documentation performance data to compare third-party servicers, so that a lender can see who is making the most mistakes. The software is meant to help banks become aware of any problems in their closing or post-closing process, whether it's internal or external.

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