compliance services -...

Helping customers mitigate risk and maintain

compliance to become more attractive as

responsible financial institutions to clients,

investors and to the public.

Compliance Services

Interthinx® is the leading provider of proven risk mitigation and regulatory compliance tools for the financial services industry. More than 1100 customers rely on Interthinx, a First American company, for scientifically-based automated solutions. With technology that earned the prestigious 10X Award as “a diagnostic and corrective solution of the highest order,” Interthinx expertise in data mining, risk scoring and automated regulatory compliance analytics sets the standard for the industry and directly increases the value of client portfolios.

1800.333.4510 818.871.1941 fx interthinx.com [email protected]

Compliance Regulations

> Increasing federal and state regulation> Decreasing investor confidence> Higher scrutiny of non-compliant loans> Heightened enforcement/fines for non-compliance> Increased buyback exposure> Individual borrower lawsuits and defenses to foreclosure> Reputation risk

Licensing

> Unlicensed loan officers, brokers, correspondents and appraisers> Criminal backgrounds> Compliance with federal and state requirements> Ongoing management/monitoring> Annual recertification

Interthinx Compliance Services provide crucial checkpoints in the loan production workflow to:

> Prevent the origination, purchase or sale of non-compliant loans > Enforce policies and procedures for third party business> Provide an essential audit trail for executive management

Empower your employees with the information they need to make responsible business decisions.

Challenges

In the residential mortgage industry, corporate responsibility is no longer an ideal. It’s a mission

critical business requirement. Interthinx Compliance Services help customers lower costs, maintain

compliance with federal, state and local laws and manage current business challenges.

the Interthinx Value Proposition

Interthinx Compliance Services

PredProtect®

Accurate, easy to use, comprehensive automated regulatory compliance checks

Third Party Review

Comprehensive background checks and data verification of third parties

Civil/Criminal Background Checks

Comprehensive batch processing of criminal records, civil records and bankruptcy/liens/judgment records

RegsData

State verification and alert repository around third party licensing

800.333.4510 818.871.1941 fx interthinx.com [email protected]@interthinx.cominterthinx.com818.871.1941 fx800.333.45102

PredProtect® Compliance Suite

A potential crisis is brewing for the unprepared with the next wave of lending laws and regulations, especially in the area of anti-predatory lending compliance. The proliferation of tougher standards and heightened enforcement, coupled with the barrage of new anti-predatory lending laws, will continue to tax the industry in terms of higher transaction costs and the constant threat of litigation.

Interthinx anticipates an increase in the number of new lending controls to be passed by state legislatures at an alarming pace. Reasons for this include increased pressure on legislators to take

action, the tendency of many states to follow the lead of those like North Carolina concerning consumer protection laws, and changes to HOEPA that tighten standards for all lenders. With the torrent of new laws and increased enforcement by both regulators and investors, many lenders will not be able to keep up without outside support. Consider:

> Compliance and IT staff have been reduced> Legislators are shortening or eliminating the lead times typically provided for adaptation to new laws> More loans are subject to more laws than ever before> Regulators nationwide are stepping up enforcement

Catch violations before someone else does.


Key Benefits

> Increase Profitability> Reduce Liability> Eliminate Costly Compliance Mistakes> Streamline Processes> Satisfy Investors and Examiners

PredProtect

®

Com

plian

ce Suite

Interthinx has leveraged its industry and technological expertise to create a sophisticated suite of compliance analytics tools that compare loan-level data to applicable laws, regulations and investor requirements, all in real time.

The PredProtect® Compliance Suite, used in concert with Interthinx fraud detection and risk mitigation tools, offers the most comprehensive protection available.

The in-house legal team offers immediate and direct phone/email support, which is especially helpful during the so-called “Friday Afternoon Fire Drills” where the pace can reach a fever pitch and answers are needed quickly.

100% Compliance Is a Reality

Achieving the goal of compliant loans is not only necessary, it’s also easy. PredProtect can be seamlessly integrated into any loan origination system and requires no maintenance by the customer. The system is highly responsive to new law changes and applies thousands of real-time rule sets from hundreds of laws to help lenders, investors and servicers comply with:

Quick and easy loan reviews are made possible by detailed worksheets featuring our exclusive Points & Fees DrilldownsSM that pinpoint compliance violations and suggest corrective measures even the least experienced employees can understand.

> Federal, state and local antipredatory lending laws> Truth-In-Lending Act> Investor requirements

> Prohibited fee penalty, prepayment penalty and usury tests> Client-specific tests …and much more

4800.333.4510 800.333.4510818.871.1941 fx 818.871.1941 fxinterthinx.com [email protected] [email protected]

PredProtect Worksheets display test results in an easy, clear format

Results generated in just seconds

Reduced LiabilityAnti-Predatory Lending Tests> Federal, state and local anti-predatory lending law compliance reviews

Investor Guidelines> FNMA 5% points and fees calculation> Application of HOEPA requirements to all loans purchased by FNMA

Prepayment Penalty Test > Warns users when the prepayment penalty exceeds state law limits

Prohibited Fees Test > Warns users when a fee found on either the GFE or HUD-1 exceeds state law fee limitations or custom rule sets

Usury Test > Warns users when the interest rate or APR exceeds state law rate limitations

TILA Review> APR accuracy> Finance charge accuracy> Payment stream accuracy> Rescission period analysis> Printable amortization schedule

Advanced APR CalculatorThe APR calculator is powered by Math Corporation’s technologically advanced ZMath® calculation engine that:> Supports all product types> Automatically recognizes company-specific fees> Allows for custom APR and finance charge tolerances> Predetermines prepaid finance charges so users don’t have to

Ensure compliance with new lending

requirements as they are enacted.

The PredProtect® Compliance Suite is designed to be employed at any point in the origination process and is fully customizable. Advanced data technology, including the latest industry security requirements, ensures platform stability and protection of customer information in a scalable environment.

Anti-Predatory Lending Law TestProhibited Fees Test


PredProtect

®

Com

plian

ce Suite

Streamlined Process

With results that are easy to follow, the PredProtect Worksheets with Points & Fees DrilldownsSM clearly identify included fees to take the guesswork out of the analysis.

Expert Service

Interthinx employs seasoned, in-house compliance counsel to ensure the most accurate results.

PredProtect support is supplied by a full staff of industry and technical experts, including professional implementation and training teams.

Outstanding 24/7 system support is provided by the knowledgeable customer service team.

Key Differentiators

Easiest-to-use worksheets in the industry

Direct access to in-house legal counsel by phone or email

On-the-fly customization of fees

Itemized seller/lender paid fees

Pre determined prepaid finance charges

Plain English law descriptions

Bona-fide discount point test

APR Calculator Links to Violations

The APR calculator predetermines prepaid finance charges

PredProtect’s worksheets provide Pass/Fail icons with hyperlinks to violations for easy identification of issues


Third Party Review

According to the FBI, nearly 85% of mortgage fraud is perpetrated by industry insiders. In declining markets, desperate third parties will feel increased pressure to “make loans work” at any cost. There’s never been a more crucial time to verify data on those you plan to share a business relationship with.

Whether you work with brokers, correspondents, loan officers, appraisers or any other business or individual, authenticating key data on these entities is now mission critical to quality control.


> Access to the National Fraud Protection Database (NFPD)> Access to the most comprehensive set of data sources> Advanced name matching technology to reduce false positives> Reduced risk and mitigated fraud losses

Key Benefits

> Automated, real-time objective findings> Letter grading streamlines processes> Access to exclusive Broker Risk Score for risk mitigation> Ongoing management of your Broker QA process

Third

Party Review

Interthinx is the largest provider of Third Party Review (TPR) services to the mortgage industry. Interthinx reviews and validates nearly half a million broker licenses per month. TPR provides lenders the ability to review 100% of their party originator applications with real time, automated license checks.

Know with certainty that third party

business partners are reputable,

reliable and of good character.


*Letter Grade Option and Customization Feature requiring additional costs and set up fees. Consult your Interthinx Sales Representative for details.

With proper authorization, the TPR process includes the following with near immediate results:

The final TPR report can present a Broker Risk Score, Letter Grade, conflicting information, derogatory findings and data that could not be validated in an exception format to quickly identify parties with issues.* The easy-to-read report clearly points to the areas of concern, and leverages advanced name matching technology, so staff is directed to look at the problems and immediate recommended actions.

The TPR Alert Report points to the areas of concern for problem analysis and immediate recommended actions

The Advanced Name Matching algorithm generates a confidence score with each potential match and only selects matches with a high confidence score

Advanced Technology Improves the veracity of alerts for Client Watch Lists, OFAC, industry watch lists, NFPD and Bankruptcy databases

> Automated check with state licensing agency for current status > Request state licensing agency derogatory information, if provided by the state > National Fraud Protection Database (NFPD) review > Bankruptcy filings search

> OFAC check > Lexis Nexis news article search> Soft hit credit score > Lenders/Industry Sanctions search> Industry and client submitted watch list search > Identity verification > And more…



Broker Risk Score

Interthinx offers the exclusive ability to more thoroughly review and score Third Party Originators. The innovation of the Broker Risk Score provides insight into the risk associated with individual brokers. The “score” is based on compiled results from proprietary Interthinx loan review data (over 7 million loan reviews) and the Interthinx Alert score.

> A calculation of the number of loans identified for a broker origination company and the percentage of loan reviews that have been identified as High Risk transactions and the weighted alerts are assigned a “value”.

> The combined “values” determine if the broker origination company represents a Low, Medium or High Risk for the approving lender. The Broker Risk Score provides lenders with the exclusive ability to incorporate a significant decisioning factor into their broker approval processes before accepting loans from individuals who present an intolerable amount of risk.

Letter Grade Option

The Letter Grade Option is a customizable, automated tool designed to streamline broker approval processes by allowing staff to quickly see brokers who don’t meet internal “approve” or “decline” criteria.

The “Grade”, which is based on individual broker acceptance criteria, indicates whether the broker under review is an A (Approved Broker), B (Requires Review) or C (Requiring Serious Review).

The Letter Grade Option can include a Customizable Feature that provides the ability to customize the FICO Score ranges and the ability to turn off alert weights.

The actual grade is determined based on a combination of:

> The percentage of ownership of the Broker/Owner which is applied to the FICO Score> The customized alert score> The Broker Risk Score (assessment of risk)

TPR utilizes FraudNET technology to give lenders the

ability to make critical business relationship decisions.

Broker Risk Score is based on compiled results from proprietary Interthinx loan review data (over 7 million loan reviews) and the Interthinx Alert score

Letter Grade Option is designed to streamline broker approval processes by allowing staff to quickly see brokers who don’t meet internal “approve” or “decline” criteria

Third

Party Review


Interthinx® offers comprehensive batch processing of criminal records, civil records and bankruptcy/liens/judgment records for lenders to make more informed decisions about Third Party business partners. The nationwide coverage provides the financial services industry essential background information on brokers and appraisers when complying with investor “entity review” policies. The one stop solution offers extensive coverage and the ability to process multiple submissions from large broker databases.

Background checks may also be used to screen potential employees.

Product Options

• Nationwide Criminal SuperSearch**• Single State/County Criminal**• Nationwide Bankruptcy, Liens, Judgments• County Civil (Upper Court only)***

Essential background information on brokers and appraisers to help comply with investor “entity review” policies

Extensive coverage and the ability to process multiple submissions from large broker databases

Civil & Criminal Records - Batch Processing


Key Benefits

> Complete, one stop solution> Same day results> Comprehensive coverage – 46 states> Ensures investor compliance> Batch processing for multiple submissions from large broker databases

Civil C

rimin

al Record

sB

atch Processin

g

National Criminal SuperSearch

The Criminal SuperSearch conducts a one day multistate search of criminal records, including the District of Columbia. Each Criminal SuperSearch report contains felony and misdemeanor records, sex-offender records, inmate records, and arrest information.Criminal Super Search Report Coverage

Alabama Kansas OregonAlaska Michigan PennsylvaniaArizona Minnesota Rhode IslandArkansas Mississippi South CarolinaCalifornia New Jersey TennesseeConnecticut New Mexico TexasFlorida North Carolina UtahGeorgia North Dakota VirginiaIllinois Ohio WashingtonIowa Oklahoma Wisconsin

Inmate RecordsInformation from each state’s department of corrections is provided in the Inmate Records. Reports can include information on probation and parole and give active or inactive status within a state facility. Information contained in the reports will vary depending on the state.Inmate Record CoverageColorado Kentucky NebraskaDist. of Col Maine NevadaHawaii Maryland New HampshireIdaho Missouri New YorkIndiana Montana Vermont

Single State/ County CriminalStatewide Criminal SearchStatewide Criminal Searches provide criminal records from each state and may include felony, misdemeanor, and/or traffic-case information. Each state’s case information will vary upon years of coverage and turnaround times.

Criminal Search for a Single CountyThis search provides criminal records held at the county-seat level. Reports generally include felony and/or misdemeanor records. A single-county search is valuable when there are no statewide criminal records available (Refer to matrix for states).

Single-County Civil

Civil-records searches identify non-criminal suits filed by individuals or corporations, including product liability suits, civil rights violations, judgments for nonpayment of goods, and litigation related to divorce, marriage, and child custody.Single-county civil searches provide records of civil litigation and any corresponding judgments that result from litigation. When you order a

search, you will receive records from a county’s upper courts. The county is determined by the last known address based on the name and SSN submitted.

Bankruptcies/Liens/Judgments

This is a combined search covering personal bankruptcy filings from all states, federal and state tax liens and judgments filed at the county level for 35 states. The state/county coverage varies and most counties are updated weekly. Liens reported are federal, state, and sometimes county tax liens.

Note: Each state divides its court system into upper and lower courts based on the monetary amount of the claim. The amount will vary by state.

**Refer to matrix for criminal coverage by state – provided by sales representative.***Civil recordings are typically classified by the amount of money sought by the plaintiff. These courts are commonly referred to as Upper or Lower Courts. Civil records typically do not contain a subject’s date of birth or social security number. The information provided typically is the type of case, the amount sought and any disposition found. Search will be conducted in the current county of residence.

Access critical data on business and appraisers when

complying with investor entity review policies.


Continuous Monitoring Updated nighly and able to integrate with lender’s originator database

License Reviews Quickly and concisely verify a Third Party Originator’s compliance with state licensing requirements

RegsDataRegsData helps wholesale and correspondent lenders mitigate compliance risk related to mortgage broker and lender licensing. It also assists retail operations with loan officer licensing.

The State Verification and Alert Repository (SVAR™) contains licensing information for all non-depository 1st and 2nd mortgage brokers and lenders. SVAR™ centrally stores data and allows the proactive monitoring of license information from the 50 states requiring some type of license to originate loans within that state.

Product Options

• SVAR Access• SVAR Monitor• SVAR Service• SVAR INsight

Reduce the risk of closing loans with

unlicensed loan officers.


> Monitor all broker and loan officer licenses and address changes> Accurate broker contact information for marketing can be used in any CRM system

Key Benefits

> Easy to use secure web site> Streamlines the review process> Single view of all licenses in all 50 states> Easy branch office identification

Reg

sData

SVAR™Access

RegsData offers web-browser connectivity to SVAR™Access, enabling a streamlined approach in Broker/Lender License reviews. Clients and partners are able to quickly and concisely verify, with more frequency and accuracy, a Third Party Originator’s compliance with state licensing requirements, without going through the laborious and costly process that is currently required. The goal is simple: provide the information at a reasonable monthly access fee, with no per-click charges, no per-seat charges, and no limitations on the number of searches.

SVAR™Monitor

RegsData provides continuous monitoring services of Third-Party Originators and Loan Officer Licensing and is able to integrate SVAR™Monitor with a lender’s originator database. This automated process saves time and money by removing the burden of manually verifying license renewals. In addition, a stringent data retention policy is maintained and serves as a backstop for any license audit. SVAR Monitor provides active monitoring on a nightly basis and a self-correcting license matching process, dramatically reducing human error. Through SVAR Monitor, license change information can be used to update lenders’ databases and online exception reporting shown at state level.

SVAR™Service

Looking for quicker access to broker license information? While many users appreciate the easy to use web-based search capabilities, some organizations require a deeper level integration with their loan origination or broker management system. SVAR™Service allows the search results, normally obtained through the web, to be requested from any LOS or internal application and passed directly back to the system. Plus, the easy to use test site can be used for evaluation of all data and messages. All of this is done through standard XML services and http post method call, which aid in a rapid implementation process.

SVAR™INsight

Looking to do more business with Third Party Originators? RegsData provides the most up to date information on broker locations in the industry. Whether used to prospect for new brokers or to gauge the effectiveness of current recruitment programs, the data is sure to have an immediate impact on the capabilities of marketing organizations.A list of active brokers with key contact information, monitored on a nightly basis, is provided monthly (changes only after the first of the month). Available to you by state, SVAR™INsight data easily integrates into any CRM System.

©2014 INTERTHINX, INC. All Rights Reserved. Interthinx, Inc. is a member of the First American family of companies. Interthinx, Inc. makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or ommissions. First American and the eagle logo are registered trademarks of First American Financial Corporation and/or its af filiate. Clear Value, FLEX, FraudGUARD, PredProtect, SafeCheck and ValueGUARD are registered trademarks of First American Financial Corporation. Other products or company names are or may be trademarks or registered trademarks and are the property of their respective holders.

headquarters

30005 Ladyface CourtAgoura Hills, CA 91301

toll free

[email protected]

compliance services -...

Documents