New technology wards off predatory real estate loans

March 24, 2005

Online Documents launches compliance program
Inman News

Online Documents, a subsidiary of Stewart Mortgage Information, has introduced its virtual eHUD, which will enable lenders to work with closing agents, assuring that Truth-In-Lending and other documents conform to fee changes made at the time of closing.

Online's eHUD can also be linked with third-party compliance providers to assure fee changes at closing do not result in high-cost or predatory loans.

"Online's eHUD will assure lenders that fee changes made at closing are reflected in the final loan documents. Detection of fee changes and correcting loan documents prior to closing eliminates substantial risks, costs and penalties faced by lenders in the past," Online Documents President Joan Ingham said.

Online Document's virtual eHUD is a collaborative, Web-based platform provided to the lender, closing agent and other authorized parties. Once loan documents are created, the closing agent receives an e-mail confirmation and logs onto Online's virtual eHUD to complete the HUD-1 in an electronic format.

The closing agent inputs final fees, calculations are rerun and the transaction is passed through the lender's business rules. If resulting calculations cause the loan to be out of compliance with Truth-In-Lending regulations, the lender is automatically notified by the eHUD platform in order for loan documents to be redrawn and provided for loan closing. Using XML Web services, the transaction can also be delivered to third-party compliance vendors to assure that last-minute fee changes do not result in high-cost or predatory loans.

The virtual eHUD integrates with the lender's loan origination system through an XML Web service and can also work in tandem with Online Express and Online Express Web, other Online Documents products.

"The virtual eHUD solves one of the most challenging post-closing problems facing lenders today," said Terry Ward, CMB, vice president for corporate development, Online Documents. "Eliminating compliance issues before they occur will be an invaluable service to our lenders."

Established in 1988, Online Documents provides compliant mortgage documents and related services to lenders nationwide.

Copyright 2005 Inman News

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