Comergence Reports on AML Compliance

MISSION VIEJO, Calif., Oct. 1, 2012

Comergence Takes Strong Lead in Assisting Mortgage Lenders with Anti-Money Laundering (AML) Compliance – Estimates less than 10 percent of residential mortgage loan originators (RMLOs) have documented compliance with anti-money laundering laws since Aug. 2012 effective date.

As a new anti-money laundering (AML) law went into effect in the United States on August 13, Comergence — the lending industry’s premier risk management firm specializing in residential mortgage loan originator (RMLO) due diligence and profile surveillance — has taken the lead in helping lenders manage their RMLO’s compliance. The company has created a proprietary AML compliance process for their existing lender clients, along with reporting and analytics to track which of their RMLOs have complied with the law.

For the first time, the global Financial Crimes Enforcement Network (FinCEN) will require non-bank mortgage lenders and originators to implement an AML program and file Suspicious Activity Reports (SARs) for certain loan transactions. FinCEN established this AML program in accordance with the Bank Secrecy Act (BSA). The guidelines relating to the AML requirement became effective on April 16, 2012, and the AML Program’s effective compliance date was Aug. 13, 2012.

“We estimate that only 7.4 percentof the country’s mortgage originators are currently in compliance,” said Greg Schroeder, president of Comergence. “What’s alarming is that approximately half of the phone calls we receive from originators regarding this new requirement is that they don’t even know what the AML law is. We are working closely with all parties to bring them up to speed quickly, and provide them with a solution that’s comprehensive, easy to use, and easy to manage.”

Until the Comergence software platform was created, lenders only had faxes, email, spreadsheets and paper files to manually manage compliance with RMLOs. There had been no centrally managed platform available to manage a database of third-party originators. The Comergence system provides an electronic overview and tracking of who is in compliance with this regulation, in addition to a host of other features.

“The penalties for failing to comply with the AML regulations are severe, which include a lender’s responsibility to monitor its clients,” said Eddie Rodriguez, chief compliance officer at First Mortgage Corporation, a Comergence client. “First Mortgage Corporation appreciates and welcomes Comergence’s proactive effort to monitor each of our clients by ensuring that they’ve complied with the new laws.”

Comergence supplies a robust system for lenders to manage their mortgage originators. A new dashboard reporting system can identify down to the account executive level which RMLO is in compliance and can parse lists for management in order to track and gain compliance with each of their clients.

“Working with our partners at Comergence has proven to be one of our best decisions in third party origination,” said Matthew M.Teskey, vice president of correspondent lending at Weststar Mortgage Corporation. “When our counterparts hear that we utilize Comergence for RMLO tracking and compliance management, they breathe a sigh of relief as well. Not only is the platform highly effective for our needs, but the Comergence team that supports us is top notch. As an example, when the BSA/AML deadline approached, the Comergence team proactively went to the client community with attestations and compliance surveys as a way to make our lives easier.”


Comergence Announces REALM IQ, Their Powerful Business Intelligence Suite

MISSION VIEJO, Calif., Oct. 10, 2011

Greg Schroeder, president of Comergence Compliance Monitoring, a leading provider of third-party originator (TPO) monitoring and due diligence solutions, today introduced REALM IQ, a powerful business intelligence reporting system that helps lenders have complete control of their data with unparalleled reporting capabilities.

“The ability for lenders to acquire fast and accurate business intelligence is becoming more important for lenders today. Executives have to make critical decisions very quickly, so gleaning meaningful and actionable use of their third party originator data is very important,” says Greg Schroeder, president of Comergence. “REALM IQ provides the business intelligence tool lenders need to learn about their key performance indicators. Lender executives can monitor the status of their business with ease, analyzing data at any level, from an overview down to intricate detail.”

REALM IQ combines Comergence’s proprietary TPO data with the lenders LOS data to create executive dashboards and enterprise-wide reports designed by Comergence specifically for the needs of mortgage lenders.

“What we have created in REALM IQ is the industry’s first solution that transforms compliance and sales data into knowledge,” says Michael Stallings, executive vice president of Comergence. “With our Enterprise edition, lender clients can create and customize their views to analyze TPO and compliance data from any perspective. Lenders can also institute varying degrees of access to data, based on the level of the individual user.”

Search words: third party oversight

Comergence Compliance Monitoring Upgrades Professional Edition of TPO Monitoring, Due Diligence Solution

ORANGE, Calif., Aug. 2, 2011

Comergence Compliance Monitoring (CCM), a leading provider of third-party originator (TPO) risk management solutions, announces the release of Realm Professional Edition 2.2 Product Suite. Realm 2.2 creates a more holistic TPO management system that enables wholesale, correspondent and reverse mortgage lenders to oversee and execute all TPO communication and administrative activities through a single electronic portal.

Through the enhanced functionality of Realm 2.2, lenders have the ability to create custom alerts for credit and regulatory risk, electronically store documents on approved TPOs, assign and manage TPOs according to lender-defined criteria, and correspond directly with TPOs through internally branded, customizable electronic communications, including requests for TPO recertification as required by Fannie Mae.

Realm 2.2 also includes functionality to support lenders’ efforts in creating a fully electronic lending environment. Included in the updates is an application programming interface (API) that integrates Realm with a lender’s LOS so that data can be electronically transferred from Realm to the other system. Additionally, Realm 2.2 also allows lenders to accept electronic signatures for required documents through the system.

“The first half of 2010 has seen a dramatic shift in the regulatory landscape, putting compliance issues at the top of the list of mortgage originators’ concerns,” said Greg Schroeder, president of Comergence. “The updates to Realm reflect Comergence’s commitment to assisting both lenders and brokers in meeting the new demands of a stronger regulatory environment through enhanced due diligence and risk management.”

As added assurance to its reverse mortgage lender customers, Realm 2.2 also enables lenders to perform due diligence checks and verification to determine if a broker has or has ever had a securities license.

“Our reverse mortgage customers are extremely sensitive about protecting their potentially vulnerable clients,” Schroeder added. “This important addition to the Realm platform enables reverse mortgage lenders to ensure their approved brokers aren’t able to convert reverse mortgage proceeds to sell securities recklessly or inappropriately to that market niche.”

For TPOs who are members of Comergence’s Trusted Mortgage Professional program, Realm 2.2 enables them to electronically submit documentation to over 150 lenders listed in Comergence’s wholesale database, saving the TPO both the time and cost of creating documentation packages for each lender individually.

For more information on the additions to Realm 2.2, contact Michael Stallings at 714-495-4722 or