Financial institutions that offer certain types of residential mortgage products must also provide the ability for another party to assume the terms of that mortgage. This process is called a mortgage assumption. Historically, mortgage assumption transactions lacked automation because of demand variations given interest rate fluctuations. Due to intense regulatory requirements, mortgage assumptions are expensive and challenging transactions to process, with data collection, calculations, content and process challenges.
The problem is exacerbated by the TILA-RESPA Integrated Disclosures (TRID) regulation, which dictates new disclosure documents for mortgage assumptions.
ComplianceOne assumption lending is unique in that it automates a process that is almost entirely manual today. It leverages an existing lending platform — ComplianceOne — that was originally designed to help smaller institutions document lending and deposit transactions. ComplianceOne assumption lending contains functionality that automates processes beyond document generation and allows tracking from the start of the assumption loan to servicing. It also offers e-delivery of new TRID disclosures vs. the paper routing approach usually used in mortgage assumption transactions.
ComplianceOne assumption lending pivots existing technology architecture to capitalize on a small but highly lucrative market adjacency leveraging an existing platform. It solves data collection, calculation, content and process challenges for assumption lending, significantly reducing institutions’ operational expenses.
Four Key Advantages:
- Most competing solutions are expensive, manual-based processes. ComplianceOne assumption lending is unique because it automates the necessary calculations and documentation, helping institutions manage the entire workflow — from application through closing documents — for the assumption process.
- Institutions benefit from the elimination of manual processes, reduction in time and labor to produce transactions, and efficiency gains in regulatory and process compliance.
- The solution allows financial institutions to be compliant with TRID regulatory requirements.
- The solution creates a sustainable approach to mortgage assumption transactions that is automated and repeatable.
Wolters Kluwer Financial Services