Prior to LeadER, if interest rates surpassed the high-cost threshold, loans were manually adjusted during underwriting, leading late-stage borrowers to demand re-disclosures.
FREMONT, CA: Ncontracts, the provider of integrated risk management and lending compliance solutions for the financial services industry, has announced that the company's QuestSoft lending solutions team has partnered up with Discover Financial Services on a new automated prequalification review. This solution will help streamline loan originations while maintaining sure compliance with all applicable State, Federal, and local rate limits.
"We're focused on providing a superior customer experience throughout the entire home loan process," stated Nicole Straub, General Manager of Discover Home Loans. "By working with Ncontracts and QuestSoft to develop LeadER, we were able to continue providing a simple and seamless application process from start to finish for our customers."
Prior to LeadER, loans were manually adjusted during underwriting if interest rates exceeded the high-cost threshold, causing late-stage borrowers to seek re-disclosures. Discover partnered up with Ncontracts and QuestSoft to develop the LeadER check, a compliance mechanism that automatically changes pricing when rates reach high-cost thresholds, making sure that applicants receive the most accurate price quote upfront. In addition to calculating and verifying APR as well as payment streams for multiple side-by-side quotes and evaluating calculations for all forms of loans, the new method tests applicable index values when calculating as well as verifying APR and payment streams for multiple side-by-side quotes and estimating calculations.
"We are excited that in just nine months, we were able to work with the team at Discover to create this automated solution that improves the origination process and the borrowers' experience," stated Steve Butler, senior vice president, automated mortgage lending solutions at Ncontracts. "LeadER can also now be used throughout the mortgage industry to help other lenders accurately quote rates to applicants while remaining compliant with all the various rate limits."