Glitch-Proof Gains in Loan Servicing BY CHRIS DE REZAREFT STAFF REPORTER The Englewood, Colo.-based Mortgage Analysis Computer Corp. (MACC) has developed technology to render loan processing more error-proof. R.W. "Bob" Brown, MACC President, said there has not been a lot of attention paid to the issue, and solutions being employed by some companies are ineffective. These methods skirt the issue of addressing the problem head-on, Brown said, and are not cost effective. "Errors and related risks in loan servicing often go unacknowledged by senior management," Brown said. "The burdens placed on the heads of servicing units are exacerbated by the volume of bulk sales/purchases, mergers, acquisitions and the multifarious electronic origination sources." Recently, MACC, at the direction of Tucker Adams, chair of its board of directors and chief economist for U.S. Bank in the Rocky Mountain region, developed "middleware" technology to help remedy the mistakes, and lessen financial risk. The new technology, MACC-TRAC/Vision Pro© , is the only technology currently on the market that aims to eliminate errors in the loan servicing process, the company said. The product is installed as an adjunct to any loan servicing portfolio, and it can identify data discrepancies, recalculate any loan and reconcile differences. The system has a component called Dynamic Data DiscrepancyTM which can provide real-time verification of computational and other relevant data, the company said." Traditional quality control strategies are costly and ineffective," Brown said. The product can lessen the amount of "shadow servicing," a process of "redundant oversight,". Adams acknowledged strides made in advanced technology solutions for origination and underwriting loans, but said, "There has been a void in essential technology tools for servicing managers to match these front-end systems to maintain and improve the integrity of loan servicing. It is absolutely essential to protect the interests of borrowers, investors and servicing enterprises," Adams said. Payment postings, current and historical, are integrated electronically for complete recomputation and reconciliation with servicing errors, the developers said. Identified discrepancies are immediately corrected. Once the data is in the system, the process targets single loans or loan pools that can be immediately reassessed and recalculated at any future time. Brown said through this process, reports with high accountability are available to investors and borrowers." "Residential and commercial variable and adjustable loans are most vulnerable to servicing errors. However, errors in fixed rate, lines of credit, home equity and other loans are common too. Servicing errors impact investor return borrower payments and servicer costs," Adams said. "The MACC-TRACC/Vision Pro© technology is based on 11 years of field experience, analyzing, auditing and reconciling more than $60 billion in loan assets for financial institutions, investment and accounting firms and federal agencies." "Regulators and internal audit personnel have not had an efficient or effective way to monitor, review and check loan servicing computations," Adams said. "A single associate version, though not electronically integrated, provides the ideal tool for these entities to 'spot check' loan servicing and evaluate risk." Our mission is to enhance the loan servicing enterprise for every lender, large and small," Adams said. The Vision Pro© is not for sale but is provided through an annual license fee plus a measured scale of loans for processing. The company has made the product available in different formats for different-sized companies. The Integrity Servicing ProgramTM is the central system designed for professionals in the loan servicing business, the company said. This system incorporates the D3 (Dynamic Data DiscrepancyTM ), bulk audit, electronic integration of payment history and a full range of other features. The Single Associate ProgramTM provides owners of modest servicing operations, accountants, attorney's, independent or institutional auditors and consultants access to most of the system. It is delivered with about 90 standard indices, and updates are available to licensees through MACC via the Internet or fax-for-a-fee. Copyright © 2000, 1999, 1998 Mortgage Bankers Association of America, 1919 Pennsylvania Ave, NW Washington, DC 20006-3438 (202) 557-2700, All Rights Reserved.
	Copyright © 2000, 1999, 1998 Mortgage Bankers Association of America. 1919 Pennsylvania Ave, NW Washington, DC 20006-3438  (202) 557-2700, All Rights Reserved.