ENGLEWOOD, Colo. - Mortgage Analysis Computer Corp. has developed a computer system that checks whether adjustable-rate mortgages are being serviced correctly.

In an announcement, the company said it had created the system with by using its auditing experience, which covers thousands of loans from more than 300 servicers.

It said its work has included verifications of servicing for loan pools and securitizations and has involved some $14 billion in assets.

"Virtually every type of adjustable-rate loan has been encountered, from standard residential loans to highly complex and sophisticated commercial and boutique loans," the announcement said.

Mortgage Analysis said several events had contributed to the need for the verification capability. The key points include:

* The industry has experienced a large number of class actions and individual suits challenging rate adjustments.

* The sale of many adjustable loans by the Resolution Trust Corp. created an active secondary market.

* The large number of mergers and acquisitions of financial institutions has increased the transfer of servicing portfolios, increasing the potential for errors.

Tucker Hart Adams, chairman of Mortgage Analysis, said the new system was potentially beneficial to both lenders and borrowers. "Lenders need added assurance of servicing practices and borrowers need confidence that their lender is treating them fairly," he said.

Philip Nestingen, senior vice president, said, "We have attempted to address every situation encountered over the past six years" in auditing more than 10,000 loans.

He said the program has management and security systems and is designed to run with any Windows program from version 3.1 to Windows 95.

Earlier, the company developed programs that allowed loan originators, realty agents, and others to compare the interest rate costs of various mortgages. One of the programs is also used by investors to model adjustable-rate performance expectations.

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