LoanLogics Enhances Tech with Fair Lending Solution

""LoanLogics"":http://www.loanlogics.com/, a Pennsylvania-based company specializing in loan quality management and performance analytics, announced new enhancements to its LoanDecisions pricing and eligibility platform.

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In response to the Consumer Financial Protection Bureau's (CFPB) more comprehensive auditing process, LoanDecisions now includes a robust Fair Lending feature to help lenders collect data and prove their compliance to the Fair Housing and Equal Credit and Opportunity Acts.

""Lenders that use this feature can combat implications of disparate impact or treatment because they can provide the CFPB with an audit trail proving that the borrower was given the best program, price and lock period available,"" said Matt Thoman, product manager for origination technologies at LoanLogics. ""This demonstrates that the borrower received the best deal. This decision can be tied back to the lender's pricing policy.""

For example, if a loan originator using the solution chooses not to use the loan with the best price, the program prompts the user to record a reason for that decision, making it available to the lock desk team and allowing them to confirm or deny the lock based on those reasons. A loan-level report is also produced on every loan for the compliance team, giving them something to reference during an audit.

The Fair Lending feature may be most useful for small- and mid-sized lenders, who have not had to deal with Fair Lending audits as much in the past.

""This feature will help ensure that our clients have the loan-level data that will help them respond appropriately in Fair Lending Audits and provide evidence that they abided by the law,"" said Joe Helfrich, EVP and chief legal and risk officer at LoanLogics. ""Institutions of all sizes will find this upgrade appealing, especially lenders who are interested in reducing the large amounts of time and effort needed to prepare for a fair lending audit.""