NYLX Helps Manage Profits and Comply With LO Comp Rules and Safe Harbor in the Time of TILA

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LoanDecisions product eligibility and loan pricing platform enhancements provide flexible pricing controls and support a compliant discussion of loan pricing offers as loan originator compensation rules are changing. New functionality can be used to create a compliance discipline in the selling process, audit the consistency of compliant workflows, and manage the profitability of loan pricing.

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The intent of this release is to provide our customers the internal controls needed to better manage the quality of the loan offer discussion in the context of an acceptable company profit.

NYLX, a leading provider of automated mortgage data applications and solutions, has now launched system enhancements that provide greater flexibility and functionality to support evolving changes to loan originator compensation, inclusive of the Federal Reserve final rule on loan originator compensation and steering. New functionality includes:

  • Par rate management tools that complement existing standard and advanced margins and provide more controls to manage profitability from point of sale (down to the user level) through secondary market.
  • Enhanced pricing displays and documentation that support a consultative discussion with borrowers, and if required, evidence of safe harbor.
  • Originator commission displays that can be turned on or off and are completely customizable to an organization’s commission plans and strategies.

Lou Altieri, NYLX President, stated, “The intent of this release is to provide our customers the internal controls needed to better manage the quality of the loan offer discussion in the context of an acceptable company profit. In light of ever evolving regulations and requirements, we have placed a priority on flexibility, allowing functionality to be customized and turned on or off given the timing of compliance requirements.”

In this latest release of LoanDecisions software, the loan originator is provided with the necessary pricing tools to sell in a compliant manner and effectively position competitive, eligible offers to prospective borrowers. From an administrative perspective, par rate management provides another layer to manage margins effectively across any variety of selling channels that may carry different expense profiles and sales goals.

NYLX has made these most recent enhancements based on expert advice of legal and consulting resources, as well as customer feedback. Ari Karen, attorney at Offit Kurman and one of NYLX’s advisors, states, “The technology offers a degree of flexibility to provide a range of rates to loan originators, increasing compensation and interest rate for a particular originator's loans to reflect the higher compensation paid to that originator. This gives the LO's the flexibility to remain competitive, and incentivize a loan officer to remain as profitable as possible, without basing compensation on the terms (aggregately or individually) of the loans the loan officer closed.”

The pricing engine is a primary tool that can now be used to create a compliance discipline in the selling process, audit the consistency of compliant workflows, and manage the profitability of loan pricing. The process starts with an evaluation of the workflow and business model as defined by the client. The implementation process then leverages a roles-based architecture offering the flexibility to customize a solution that aligns with a customer’s unique requirements.

About NYLX
NYLX is a market leader for automated mortgage data applications and solutions. From point of sale to secondary market, NYLX makes mortgage investor data actionable, providing our customers a strong return on investment. We give mortgage professionals the unique ability to attract borrowers, adapt to market conditions in real-time, make smarter decisions and achieve better executions on transactions. With over one million pricings per month, our flagship on-demand product eligibility and pricing platform, LoanDecisions, is used by banks, credit unions and mortgage bankers nationwide. Additional information may be found at http://www.nylx.com.

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Mary Anne Ahmer
NYLX
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