QuestSoft Updates CFPB HMDA Testing Database to Ensure HMDA Readiness
Database enables lenders to test all CFPB mandated loan validity and quality edits three months before deadline
LAGUNA HILLS, CALIF., Oct. 5, 2017 – QuestSoft, a provider of automated mortgage compliance software, has released an update to their testing database for the new Consumer Financial Protection Bureau (CFPB) HMDA collection rules that go into effect in 2018. The new update enables lenders to fully test their live loan files against the 2018 validity and quality edits, three months before being mandated to collect this data on all mortgage loans subject to the new requirements.
The software includes 215 new validity error codes and 42 new quality checks from the CFPB guidelines released in late August, as well as an additional 18 checks where QuestSoft uncovered potentially incorrect data entry in its internal testing. These new error codes have no ties to historical codes, allowing lenders to start with a “clean slate” and adjust to new standards and conditions throughout their operations. The QuestSoft test database will help lenders confidently comply with the regulation and test for accuracy prior to collecting data on live loans beginning January 1, 2018.
“Loan errors are one of the most complicated changes lenders must adapt to with the new HMDA standards,” said Leonard Ryan, QuestSoft president. “In addition to the sheer magnitude of a 169% increase in HMDA edits, each error now has multiple conditions, and a blank loan application immediately triggers more than 67 errors (a threefold increase). By providing the rulesets a full quarter before data collection is required, we are making it practical for lenders to ensure their loans are fully compliant, valid and accurate before the January 1st deadline.”
The 2018 test database has been available since December 2016, and the new rulesets are now available free of charge to all QuestSoft Compliance RELIEF customers that have licensed the HMDA module for Year 2017. QuestSoft is also working with the industry’s leading loan origination software (LOS) providers to automate the importation of data for testing. Customers can import live data from participating LOS platforms to see gaps, interact with their systems and internally adjust their procedures. 37 LOS vendors and document platforms have already committed to supporting imports for the QuestSoft Compliance RELIEF product.
Loan Origination Systems that have indicated they intend to export into the QuestSoft format include popular platforms such as Ellie Mae Encompass, Calyx Point, LendingQB and many more.
Laguna Hills, Calif.-based QuestSoft is a leading provider of comprehensive compliance software and services for the mortgage, banking and credit union industries. QuestSoft combines 20+ years of mortgage regulatory, CRA and Fair Lending compliance analytics, data management and software design expertise with best-in-class customer service to consistently improve client compliance accuracy and facilitate smoother regulatory audits. QuestSoft products, interfaced with over 40 LOS providers, enable more than 2,500 clients to simplify and speed the collection, analysis, compilation and reporting of key lending regulatory report data. For more information, call 800-575-4632, ext 1, or visit www.questsoft.com.