Reduce cost and streamline lending processes through pre-closing automation

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1 Reduce cost and streamline lending processes through pre-closing automation find problems early validate data boost accuracy save money Catching potential compliance violations before you fund a loan saves you money and headaches. But an effective pre-closing process that identifies problems early is labor-intensive and costly as you labor to check regulations, verify data, validate brokers and borrowers, determine whether the property is within a flood zone, and get the HMDA information right. Compliance errors missed pre-closing are more costly to correct after funding and may result in fines. Adding to this, you ll certainly encounter difficulties trying to sell the loans in the secondary market. Getting it right prior to closing takes a rigorous effort involving everything from validating data to keeping up with continuously changing state and local lending laws. Few institutions have the resources to verify and validate every loan before closing. Instead, most rely on checking what they hope is a representative sample but fully expect to find and fix problems later, sometimes lots of problems. Lending Compliance Today Lending compliance today is a cumbersome and costly process. Lenders have to track a multitude of municipal, state, and federal rules that address various aspects of lending. They must verify, document, and audit compliance with each of these rules. Then they have to evaluate high cost loans, validate broker licenses, and review borrower eligibility against names on OFAC and Patriot Act lists. If that were not enough, they must scrutinize APR calculations, collect and verify HMDA data, standardize and geocode address information, and check whether properties lie within flood zones. As legislation increases in both volume and complexity, institutions cannot continue to manage these efforts simply by throwing resources at it. Until Wiz Sentinel, there has been no efficient way to handle all these pre-closing tasks. The manual approach is tedious, slow, error-prone and costly. Available automated solutions typically handle only one aspect of the task, forcing the institution to acquire, deploy, and manage a hodgepodge of tools. Given the amount of effort entailed, many institutions actually verify only a small portion of their loans and hope no serious problems surface. Overview of Wiz Sentinel Page 1

2 Wiz Sentinel Comprehensive Pre-Closing Lending Automation Wiz Sentinel automation enables you to reduce the costs and burdens associated with compliance by bringing together a collection of essential pre-closing activities in one convenient solution. It delivers a compelling set of benefits by automating a variety of tasks that ordinarily require multiple tools and extensive manual labor: Lowers cost reduces the labor and time involved in the collection, verification, validation, and reporting of data during the pre-closing process Lowers risk reduces the likelihood of errors that cause delays, require costly corrections, and potentially violate anti-predatory lending and other regulations Increased productivity, efficiency fewer people are able to handle a greater volume of lending and the corresponding pre-closing lending tasks Increased quality built-in error checking, validation, and verification enhances information quality, ensuring a highly marketable portfolio of compliant loans Improved regulatory compliance regularly updated with the latest rules changes Specifically, Wiz Sentinel provides automated expert lending screening to ensure the entire loan pool is in compliance with the myriad lending laws. It calculates APR for every loan processed in the system based on relevant T-bills and gives lenders the ability to validate the broker disclosed APR to test for Truth In Lending (TIL) compliance. It also checks whether your brokers have valid licenses through its mortgage broker database and that borrowers are not listed in the OFAC/Patriot Act databases. The flood determination component lets you quickly and accurately check whether the loan complies with the 1984 National Flood Insurance Reform Act. Additionally, an integrated rate spread calculator computes the spread on loans that exceed the HMDA-specified threshold (required for loans being sold to Fannie Mae and Freddie Mac). Wiz Sentinel allows for HMDA error checking and data scrubbing at the beginning of the loan process to improve and enhance information quality. And to ensure that the pricing of each loan is fair and consistent, an integrated front-end Second Review evaluates each applicant in comparison to one another before the loan even reaches underwriting. Wiz Sentinel does all this fast not hours or minutes but seconds! Lending Organizations Large and Small Endorse Wiz Sentinel: Wiz Sentinel is clearly the most easy to use, robust, and cost effective anti-predatory lending software solution on the market. Sue McGovney, senior vice president, Compliance, IndyMac Bank Overview of Wiz Sentinel Page 2

3 Inside Wiz Sentinel Like all PCi product sets, Wiz Sentinel combines proven software automation and access to the latest information databases with expert professional services to deliver a complete front-end compliance solution. It effectively automates the pre- and post-closing compliance review process and the preparation of management reports. Lending organizations turn to Wiz Sentinel to speed the process, reduce costs, free staff resources, ensure compliance with anti-predatory lending rules, and improve the marketability of their loan portfolios. Key features include: HOEPA Section 32 Review Predatory Lending Review OFAC Checks Flood Determinations Geocoding Front line 2nd Review Custom Enterprise Rules APR Verification TILA (Reg Z) Disclosure Information Validation Rate Spread Calculation Pre-closing Broker Monitoring HMDA Data Validation Address standardization and validation In addition, Wiz Sentinel offers customizable reporting options that allow you to produce loan level reporting as well as aggregate management summary reports to meet your exact needs. And our flexible pricing model means lenders pay only for the functionality they need to support their institution s pre-closing activities. PCi professional services assist the organization in optimizing the automation of Wiz Sentinel reporting and ease the integration with the LOS and other systems. From a systems standpoint, we provide multiple options for seamless front-end integration with existing systems through standard data transfer and batch processing options to facilitate the upload multiple loans to the system. Using, Wiz Sentinel easily integrates with existing systems through a simple Web service. Wiz Sentinel Integrates with Your Existing Systems Updated Back-End Data to LOS Modified & Enhanced Data LOS 1 LOS 2 LOS 3 Create Detailed Failed Audit Report Compliance Engine Data Acceptable? Predatory Lending HMDA & CRA Edit Checks Geocoding OFAC Broker License Data Quality Checks Compliance Engine.net / web services Enterprise Compliance Platform Branches/Officers access applications for error editing via browser based app Back Office Compliance Analysis & Reporting Analysis Risk Management Database Overview of Wiz Sentinel Page 3

4 Lending Organizations Turn to Wiz Sentinel for: Bundled pre-closing components from a single, proven vendor. Automated loan screening processes data with a sub-second response time enabling institutions to audit loans quickly and screen the entire portfolio rather than just a subset of the loans. Loan testing and screening as needed throughout the loan origination process. Reduced compliance burden through continuous monitoring of federal, state, and municipal predatory lending legislation, which reduces IT resources needed to implement and support the latest legislative changes. In addition, through our professional services we lay out best practices for achieving maximum efficiency and cost savings through the use of Wiz Sentinel Where Wiz Sentinel Fits into the Lending Process HOEPA Section 32 Review Predatory Lending Review OFAC Checks Geocoding Front line 2nd Review Custom Enterprise Rules APR Verification TILA (Reg Z) Rate Spread Calculation Pre-closing Broker Monitoring HMDA Data Validation Address Standardization and Validation Regulatory Reporting Portfolio o Mngt & Risk Analysis Post-Closin osing Compl pliance Closing Pre-Funding Underwriting Document Preparation Loan Application Predatory Lending Review Flood Determinations Overview of Wiz Sentinel Page 4

5 About PCi PCi Corporation is the industry choice for institutions seeking to keep lending in compliance with both regulatory and internal business standards. Over 2000 institutions, including 93 of the top 100 lenders, rely on PCi's software and professional services to monitor, detect, analyze, and resolve compliance demands throughout the entire lending process. Compliance expertise, acquired during more than ten years of operating success, positions PCi to help lenders produce compliance-certified loans that minimize risk, identify lending opportunities, add value to portfolios, and serve the needs of their communities. Wiz Sentinel is one of a family of lending solutions from PCi. Our other solutions are: Wiz Sentinel Includes: - Predatory Lending Review - OFAC - HOEPA Section 32 Review - TILA Disclosure Information Verification - Pre-closing Broker Monitoring - Flood Determinations - Front line 2nd Review - HMDA Verification - Professional Services: Business Process Optimization for Lending Compliance Fair Lending Wiz CRA Wiz Wiz LoanScout (loan optimization) HMDA Wiz All PCi solutions include our proven automation technology, expert professional services, and easy integration with your existing systems. Achieve Pre-Closing and Compliance Excellence The best way to streamline pre-closing and compliance processes is to automate as much as possible. Wiz Sentinel gives you a single automated solution that provides all the automation and data you need to do the job correctly from the start. The result: Wiz Sentinel automation reduces cost, eliminates errors, and speeds production as it mitigates the risk of lending law violations. Wiz is registered in the U.S. Patent and Trademark Office. Copyright 2004 PCi Corporation. All Rights Reserved. Rev. 4/15/04 Overview of Wiz Sentinel Page 5 30 Winter Street, Boston, MA TOLL-FREE: FAX: