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ComplianceEase Adds New Functionality for HELOCs

California-based ComplianceEase, a provider of automated compliance solutions to the financial services industry, announced that its flagship platform—ComplianceAnalyzer—is now able to audit home equity lines of credit (HELOCs) for state licensing requirements in most states.

ComplianceAnalyzer with TRID Monitor has been able to audit both closed-end and open-end mortgages for federal, state and local requirements, including TRID compliance, and for state predatory lending issues for some time. ComplianceEase has now enhanced its system to allow non-banks, banks, and credit unions to audit all liens in most states in which they are licensed. Currently, the system covers more than 80 licensing types in the 42 states that account for more than 90 percent of home equity originations in the United States. Depending on the state license, the system can test HELOC originations for:

  • Interest rates
  • Restricted fees
  • Late fees
  • Grace periods
  • Prepayment penalties

“According to TransUnion, approximately 5.5 million HELOCs were originated in the last five years, and that number could rise to 10 million over the next five years,” said John Vong, President of ComplianceEase. “With rising home prices creating equity, one estimate says that 44 million homeowners now have more than $6 trillion in ‘tappable’ equity and could be candidates for home equity lines and loans.”

Vong added, “Not surprisingly we are seeing a growing interest from banks and now non-banks in this category. From a compliance perspective, however, the patchwork of different state regulations for both real estate and consumer lending has presented challenges for lenders with multi-state footprints. Our new enhancements to ComplianceAnalyzer mean that lenders can now use their preferred system for first mortgage compliance to reduce exposure to potential state licensing rules for HELOCs as well.”

About Author: Radhika Ojha

Radhika Ojha is an independent writer and editor. A former Online Editor and currently a reporter for MReport, she is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.
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