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ComplianceEase teams with regulators to automate exams.

ComplianceEase, Burlingame, California, announced in August the initial release of its RegulatorConnect [TM] and RegulatorDirect [TM] solutions.

The solutions are designed to enable state-regulated mortgage lenders and banking institutions to plug into a new, more automated regulatory examination process, reducing their required time and cost. RegulatorConnect links institutions with state regulators through electronic data transfer, while RegulatorDirect enables lenders to electronically deliver compliance audit reports to regulators with a single click, explained ComplianceEase Vice President Michael Chan.

At the heart of the new process is ComplianceAnalyzer [R], which was selected by the Conference of State Bank Supervisors (CSBS), Washington, D.C., to provide baseline as well as customized state agency-specific audits as the examination automation component of the Model Examination Guidelines (MEGs) initiative, said Chan.

"We are very excited to be working with CSBS and state regulators on the examination automation initiative," said Chan. "The goal is to achieve efficiency, effectiveness, uniformity and standardization while reducing the cost and burden to regulators and the industry."

In the middle of 2007, in the wake of the mortgage meltdown, CSBS helped establish the MEGs for state regulators to use as a set of recommended standards for their members' examination processes.

The MEGs comprised five different modules, the fifth of which was intended to provide an "efficient tool to mechanize certain mundane and repetitive examination functions," said Chuck Cross, vice president of mortgage regulatory policy at CSBS.

"Technology and automated solutions have become essential elements for CSBS to leverage as we seek new ways to standardize and improve regulatory supervision while streamlining the examination process for institutions and for regulators," said Cross.

Consequently, said Cross, ComplianceEase's flagship automated compliance system, ComplianceAnalyzer[R], was chosen as the examination automation tool for the fifth module, following an eight-month evaluation and selection process by a task force representing 14 state agencies.

"We've been very pleased to work with ComplianceEase on this initiative," said Cross. "This has far-reaching implications for the way regulators and financial institutions will be able to approach what has been, in the past, a time-consuming and cost-prohibitive process."

A stricter regulatory environment is forthcoming as part of the continuing response to the mortgage crisis. In order to fully understand the operational risks, loan-level reviews will be necessary in order to safeguard institutions' assets as well as to protect the consumer, said Chan.

"Financial institutions know that they need to be prepared for major regulatory changes and tougher regulations in the near future," said Chan. "It's critically important for institutions to determine the best regulatory strategies, particularly given the present economic landscape."

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Title Annotation:TechNewz; ComplianceEase launched RegulatorConnect and RegulatorDirect solutions
Comment:ComplianceEase teams with regulators to automate exams.(TechNewz)(ComplianceEase launched RegulatorConnect and RegulatorDirect solutions)
Publication:Mortgage Banking
Date:Oct 1, 2008
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