TheMReport

10 | TH E M R EP O RT THEMREPORT.COM Enhancements Ahead COMPLIANCEEASE ADDS NEW FUNCTIONALITY FOR HELOCS. C alifornia-based Com- plianceEase, a provider of automated compli- ance solutions to the financial services industry, announced that its flagship platform—Com- plianceAnalyzer—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 nonbanks, 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 origi- nations for: • Interest rates • Restricted fees • Late fees • Grace periods • Prepayment penalties "According to TransUnion, ap- proximately 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 nonbanks in this category. From a compliance perspective, however, the patch- work of different state regulations for both real estate and consumer lending has presented challenges for lenders with multistate foot- prints. 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." Reducing Risk RRMC ANNOUNCES NEW FINTECH PRODUCT FOR HOMEOWNERS AND CREDITORS IN 2019. R isk Reduction Mortgage Corp. (RRMC), a New Hampshire-based mort- gage product fintech startup, has announced the launch of its signature solution Risk Reduction Mortgages. The company has said that its new product will be made available to homeowners and creditors starting in 2019. RRMC has said that its product has been proven to substantially reduce the risk for all stakehold- ers and provides much-needed stability to the housing finance system. Underpinned by Home Diversification Agreements, Risk Reduction Mortgages will deliver key benefits such as eliminating the need for PMI, HFA, or piggy- back second mortgages for those unable to afford the standard 20-percent down payment–provid- ing savings of thousands of dollars each year for the tens of millions of homeowners in this category. This product will also provide a diversification benefit enabling homeowners to substantially reduce their home-equity value risk, obtain a similar reduction in foreclosure risk, and enjoy a lower interest rate due to their reduced- risk profile. It will also provide creditors (e.g., GSEs) up to a 70-percent reduction in systemic credit losses. "Our new mortgage product is the most important financial innovation since securitization," said Marc Biron, Founder and CEO, RRMC. "If available at the time, there is strong evidence they would have helped avert the 2008 meltdown." RRMC is the creator of the exclusive Risk Reduction Mortgage—termed "the only free lunch in Economics," a product that addresses the all-important issues of affordability, diversifica- tion, and risks for residential real estate stakeholders. Our mission is to help millions

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