PLANO, Texas--(EON: Enhanced Online News)--Optimal Blue, award-winning developers of Web-based, enterprise lending services, today announced it released Optimal Blue Advantage℠, a real-time compliance management solution that provides oversight for monitoring and documenting potential Fair Lending or Disparate Impact violations at the time of lock. Working with clients, fair lending experts and industry consultants, Optimal Blue has designed the service to identify a lender’s potential policy violations at the time of lock, or when there is a change in pricing, during the origination process as opposed to after the loan has closed. This represents a transformational approach to how compliance is managed.
“Fair Lending Compliance and Disparate Impact Claims are the number one issue with regulators”
The Consumer Financial Protection Bureau’s (CFPB) enforcement of Fair Lending compliance focuses on disparities in pricing, underwriting and other lending disparities, as well as lender specific exceptions trying to ensure all consumers have equal and equitable access to credit. There are a number of specific Fair Lending issues that are developing as the industry anticipates the implementation of CFPB Regulations in 2014. These issues include:
- Price exceptions
- Disparity of pricing between branches in the same MSA
- Loan Level Pricing Adjustments (LLPA) application differences among borrowers in similar situations
- Loan originator price quotes / locks versus available pricing options
- Loan originator price change request documentation
Optimal Blue Advantage allows lenders to manage these issues in real-time. By continuously monitoring the mortgage pipeline the lenders have the ability to identify loans that are not in compliance with their policies at the time of lock, rather than identifying discrepancies through conventional means of reporting after a loan has closed. This is tremendous advancement in the area of compliance, as lenders can also verify and document consumers were given the best product for them. By using Optimal Blue Advantage, lenders have the data to address all of the aforementioned issues.
“Fair Lending Compliance and Disparate Impact Claims are the number one issue with regulators,” said Larry Huff, co-CEO of Optimal Blue. “Monitoring this issue in real-time, as part of a comprehensive compliance management solution, is paramount to lenders. We believe that Optimal Blue Advantage is not designed to displace current compliance solutions. It is designed to move the monitoring and enforcement of policies earlier in the process. There are no other 'PPE' technology providers that have the ability to provide this service. When coupled with our Historical Pricing functionality, Optimal Blue Advantage is again changing the industry. Optimal Blue Advantage can assist lenders in doing everything they can to ensure fair lending compliance by providing a single source for pricing and loan originator compensation across all of a lender’s business channels, including retail, wholesale correspondent and consumer direct. The significance of Optimal Blue Advantage cannot be understated.”
This has been a significant area of focus for Optimal Blue over the past year. Hiring Tammy Butler as the company’s Director of Compliance and Fair Lending demonstrates our commitment to helping our customers deal with the challenges facing the industry. Butler has created and participated in several forums for the industry specific to Fair Lending topics. The company’s Fair Lending and Compliance Group on LinkedIn currently has more than 800 followers and Butler’s blog continues to be one of the popular destinations on Optimal Blue’s Web site.
About Optimal Blue
Founded in 2002, Optimal Blue is a Web-based provider of managed content, product eligibility, pricing and secondary marketing (PPE) technology. Based in Plano, Texas, Optimal Blue has developed a comprehensive suite of products designed to give lenders the ability to automate the management and distribution of their products and pricing, enabling originators to then source, manage, price and lock loans in a way that is efficient, accurate and easy to use. Without having to be technology experts, Optimal Blue’s solutions allow clients to leverage superior technology and content for a competitive advantage. For more information, please visit www.optimalblue.com.