LendingQB believes that mortgage compliance is more than rules and regulations. A compliant loan is made up of 5 different layers of quality control.

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LAYERS OF
COMPLIANCE An Holistic Approach to
Compliance and Mortgage
Lending
The deluge of regulatory changes taking place in
the mortgage industry is a legitimate reason for
lenders to stay awake at night. It's like racing a car
down a mountain road in the middle of the night.
The margin of error is small, and the consequences
of being non-compliant are just too big to ignore.

2. FIVE LAYERS OF COMPLIANCE
But keeping up with regulatory changes is only one part of the overall LAYER 1: INVESTOR AUTOMATED UNDERWRITING ENGINE
compliance equation. The ultimate goal for any lender is to create a
Ensuring investor eligibility compliance
clean and safe mortgage note that can be delivered without risk of
LendingQB’s automated underwriting engine determines loan eligibility for
dispute or buyback, and to do so profitably. That's why lenders need
over 400 pre-built investor products. The engine boosts pull-through rates
to consider compliance from a holistic perspective, with the under- and ensures loans can be sold to investors by matching loan data and live
standing that the entire process, from origination all the way through credit report data with detailed investor overlays.
funding, has an influence on whether a loan is compliant, legally or
otherwise. LAYER 2: BUSINESS RULES ENGINE
LendingQB designed their LOS platform using a compli-
ance-driven approach. They created an array of technology tools that Ensuring staff procedural compliance
wrap loans in five different layers of compliance, each one covering a LendingQB’s business rules engine puts lenders in control of their employ-
ees and processes. Business rules are constructed at the individual field level
specific area of risk and determine view, read and write access, in addition to status-dependen-
The combination of these tools results in an LOS that works cies and other advanced workflow controls.
hard to maintain compliance at every stage of the loan cycle, with
anyone that touches the loan, at the moment they touch it. By detect-
LAYER 3: AUTOMATED CONDITIONS, EDOCS & TASK SYSTEM
ing, preventing and correcting issues that can lead to compliance
problems further down the process, lenders can not only save time Streamlining conditions and underwriting approval compliance
and money, but they can use the LendingQB LOS to instill good habits Communication, transparency and control are the keys to having an efficient
within their staff and improve their organization over the long term. process for conditions. LendingQB’s automated conditions, Edoc paperless
system, task management system and the unique way it’s all tied together
In the face of economic, political and regulatory change, enables an efficient and compliant clear to close process.
mortgage lenders must accept increased compliance as a simple fact
of business life. Instead of merely satisfying state or federal regula-
tions, however, successful lenders will use this opportunity to build a LAYER 4: RED FLAG REPORTING
better business by addressing the compliance issues that exist inside, Organizational compliance
as well as outside, their organization. LendingQB’s Red Flag Reporting automatically runs and emails sophisticat-
Let LendingQB provide you with the technology that will ed reports on regular schedules to allow management to monitor the status
of the organization. Red Flag Reports are designed to detect workflow
guide you safely down the compliance path with your revenue and
bottlenecks and highlight areas of concern.
profits intact. Contact us at (888) 285-3912 or info@lendingqb.com.
This article is the first of seven articles that detail the compliance features LAYER 5: COMPLIANCEEASE® REAL-TIME AUDIT ENGINE
of the LendingQB LOS Platform. Detecting state and federal regulatory compliance issues as-it-happens
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LendingQB’s has partnered with ComplianceEase to build an innovative data
integration that continuously runs the ComplianceAnalyzer® audit engine
while loans are worked on in real-time. The integration saves lenders time
and resources because compliance issues are corrected as they happen.

3. LendingQB
3080 Bristol Street, Suite 550
Costa Mesa, CA 92626
www.lendingqb.com
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