Method and system for compliance hosting

Abstract

Technology is provided for monitoring mortgagee regulatory compliance using a centralized repository. A centralized repository hosts loan origination software (LOS) using a server. The centralized repository can be accessible to a compliance monitor and a mortgagee. The mortgagee submits mortgagee information into the centralized repository accessible to the compliance monitor and the mortgagee. The mortgagee information includes an effective date. The compliance monitor reviews the mortgagee information for regulatory compliance. The mortgagee records borrower loan information into the centralized repository using the LOS. The compliance monitor retrieves borrower loan information using the LOS. The compliance monitor audits borrower loan information for regulatory compliance. The compliance monitor reports audit results to the mortgagee.

1 . A method for monitoring mortgagee regulatory compliance using a centralized repository, comprising:
 hosting loan origination software (LOS) from a centralized repository using a server accessible to a compliance monitor and a mortgagee;   submitting mortgagee information into the centralized repository accessible to the compliance monitor and the mortgagee, wherein the mortgagee information includes an effective date;   reviewing the mortgagee information by the compliance monitor for regulatory compliance;   recording borrower loan information into the centralized repository by the mortgagee using the LOS;   retrieving borrower loan information by the compliance monitor using the LOS;   auditing borrower loan information by the compliance monitor for regulatory compliance; and   reporting audit results to the mortgagee.   
     
     
         2 . The method as in  claim 1 , wherein the mortgagee is selected from the group of a mortgage broker, a loan originator, a loan producer, a loan servicer, and a lender. 
     
     
         3 . The method as in  claim 1 , wherein audit results are configured to include compliance violations which are graded into one of a low risk compliance violation, an acceptable risk compliance violation, a moderate risk compliance violation, and a material risk compliance violation categories, wherein information about acceptable risk compliance violations, moderate risk compliance violations, and material risk compliance violations are reported to the mortgagee, wherein the material risk compliance violations are reported to a regulatory authority. 
     
     
         4 . The method as in  claim 1 , wherein auditing mortgagee information including the borrower loan information includes completing a checklist to verify regulatory compliance. 
     
     
         5 . The method as in  claim 1 , wherein auditing borrower loan information occurs within a predetermined time after a loan closing and occurs at a frequency for the mortgagee based on a predetermined number of mortgages closed. 
     
     
         6 . The method as in  claim 1 , wherein auditing borrower loan information is configured to be audited based on a predetermined percentage of loans closed by a mortgagee or loan officer or predetermined statistical sample of loans closed by a mortgagee or loan officer. 
     
     
         7 . The method as in  claim 1 , wherein auditing borrower loan information is selected from the group of:
 reconciling an application with final documents,   checking an appraisal for reasonable comparables and within a specified time,   verifying documents signed,   checking handling of employment verification for suspect parties,   verifying tax returns and self-employment financials,   verifying credit reports ordered and filed,   determining any judgments against a borrower,   determining funding source from an entity other than borrower,   verifying discrepancies were resolved and documented,   checking that debt ratios are within guidelines,   verifying the accuracy and completeness of underwriting conclusions,   checking that conditions were cleared prior to closing,   determining that forms were accurately completed and appropriate fees charged,   verifying that file contains relevant documents,   verifying insurance coverage,   determining suspect “flipped” property,   determining “straw buyer” transaction, and   verifying documents evidenced and retained.   
     
     
         8 . The method as in  claim 1 , further comprising assessing the mortgagee a fee based on a loan audited and the mortgagee information reviewed. 
     
     
         9 . The method as in  claim 1 , wherein the borrower loan information recorded in the central repository is configured to be periodically stored as back-up data. 
     
     
         10 . The method as in  claim 1 , wherein the LOS is configured to be accessible to a loan officer employed by the mortgagee. 
     
     
         11 . The method as in  claim 10 , wherein borrower loan information for a limited number of borrowers are stored locally on a loan officer's computer when recording borrower loan information into the centralized repository using the LOS, and borrower loan information exceeding the limited number of borrowers are removed from the loan officer's computer. 
     
     
         12 . The method as in  claim 10 , wherein borrower loan information is stored locally on a loan officer's computer when recording borrower loan information into the centralized repository using the LOS, but borrower loan information is removed from the loan officer's computer when the loan closes. 
     
     
         13 . The method as in  claim 1 , wherein reviewing mortgagee information is triggered by an expiration of the effective date associated with the mortgagee information. 
     
     
         14 . The method as in  claim 1 , wherein mortgagee information is selected from the group of information on the mortgagee's loan officer licenses, mortgagee site location and contact information, mortgagee office staffing, mortgagee site review, and mortgagee regulatory approval and licenses. 
     
     
         15 . The method as in  claim 1 , further comprising reporting updates to regulations on a periodic basis to the mortgagee distributed through the central repository and updating mortgagee information when the effective dates associated with mortgagee information expire or reporting non-updated mortgagee information to the mortgagee. 
     
     
         16 . The method as in  claim 15 , further comprising updating mortgagee information through a human entry of the mortgagee information or an automated electronic entry process of the mortgagee information. 
     
     
         17 . A method for monitoring mortgagee regulatory compliance using a centralized repository, comprising:
 hosting loan origination software (LOS) from a centralized repository utilizing a server storage system accessible to a compliance monitor and a mortgagee;   submitting mortgagee information into the centralized repository accessible to the compliance monitor and the mortgagee, wherein the mortgagee information includes an effective date;   reviewing mortgagee information by the compliance monitor for regulatory compliance;   recording borrower loan information via a mortgagee client-server application into the centralized repository by the mortgagee using the LOS;   retrieving borrower loan information via a compliance monitor client-server application by the compliance monitor using the LOS;   auditing borrower loan information by the compliance monitor for regulatory compliance, wherein auditing borrower loan information includes completing a checklist to verify regulatory compliance; and   reporting audit results to the mortgagee.   
     
     
         18 . The method as in  claim 17 , wherein reviewing mortgagee information is triggered by an expiration of the effective date associated with the mortgagee information. 
     
     
         19 . A system for monitoring mortgagee regulatory compliance using a centralized repository, comprising:
 a centralized repository for hosting loan origination software (LOS);   a mortgagee device for:
 recording borrower loan information using the LOS into the centralized repository, 
 submitting mortgagee information into the centralized repository accessible to the compliance monitor and the mortgagee, wherein the mortgagee information includes an effective date; and 
   a compliance monitor device for:
 reviewing mortgagee information by the compliance monitor for regulatory compliance, 
 retrieving borrower loan information using the LOS, 
 auditing borrower loan information for regulatory compliance, and 
 reporting audit results to the mortgagee device. 
   
     
     
         20 . The system as in  claim 19 , wherein reviewing mortgagee information is triggered by an expiration of the effective date associated with the mortgagee information.