Use The Complete 1003™ Software to Bring Quality Control to Your Point of Origination

You're probably thinking, how are we going to issue Guarantees when the industry standard 1003 URLA only contains approximately 10% of the questions a loan officer needs to ask to fully qualify their borrower? How are we going to avoid "he said, she said" if an issue arises over something not covered by the standard 1003?


That's where The Complete 1003™ Software comes into play. The Complete 1003™ Software produces a supplemental application for every borrower that incorporates the other 90% of necessary qualification questions that a loan officer has traditionally tried to carry around in their head.  Some have called The Complete 1003™ Software "artificial intelligence for an MLO".


The Complete 1003™ is the first application in the history of the mortgage business to compile all of these additional, crucial qualifying questions in a single format. And there are no extraneous questions. Every question on The Complete 1003™ is a question that you'd want your loan officer to ask if your applicant's scenario requires it. So by investing a few more minutes at the time of origination you can save hours of chaos later in the process.


After four years of daily effort we developed this application that condenses thousands of pages of mortgage guidelines down to a manageable size covering 97% of your mortgage application volume. And The Complete 1003™ guides your loan officer to understand when they need to conduct further research 3% of the time.


Can you see how this System will give your loan officers a unique way to approach Realtors®? Your MLO can ask an office full of Realtors® to tell them which of their recent pending transactions failed to close when a so–called Pre–Approval died in underwriting. Your MLO can then demonstrate The Complete 1003™ Software and show how this enhanced application would have caught each issue at the beginning of the process.


If the original lender had identified this problem at the time of origination, perhaps there was another lender who could have approved the scenario, and if no lender could handle it then the Realtor® and their Seller client could have accepted one of the other offers that were available to them. Or their Buyer client could have bid on a home they actually qualified to purchase.


At the end of the presentation your MLO can say that they have so much confidence in their abilities that they don't even offer Pre–Approvals, they offer Guaranteed Mortgage Quotes™. You might want to send an assistant (or two) with your MLO to handle the rush of Realtors® when the formal presentation ends.


And if you're running a call center, Guaranteed Mortgage Quotes™ are a great tool to prevent a Realtor® from making an all out effort to redirect your customer to their favorite local loan officer.


The software also places the most crucial Fannie, Freddie, FHA, VA, and USDA guidelines under each appropriate question.  While other vendors provide access to Agency Guidelines, only The Complete 1003™ shows each guideline where your loan officer can benefit from it the most.  Would you like your newer loan officers to see these guidelines and your more experienced ones to just see and work with the additional qualifying questions? No problem, with just one click in your control panel you can choose which loan officers use each version.


The overall result is that only higher quality applications that qualify to close enter your pipeline.  Therefore, processors and underwriters can handle more files as each application package requires less touches.


Price Waterhouse recently found that the loan officer is the biggest factor in the consumer's satisfaction. And the number one complaint is multiple requests for information. When all necessary application questions are asked during origination, the required supporting documents can be requested from your customer at that time. Borrowers also said they want lenders who are proactive in anticipating issues or potential problems. So using The Complete 1003™ Software will help increase a consumer's rating of their MLO and lender, which results in more referrals and repeat business (in an industry notoriously known for lack of repeat business).


Especially in this era of hyperactive social media, a loan officer error that leaves a family to move into a motel instead of their new home has the potential to create severe damage to a lender's reputation. Unhappy consumers can also easily file CFPB and/or State Regulator complaints, which often (especially on the state level) trigger costly and damaging audits. And of course all lawsuits, class action and otherwise, start with an angry customer.


Before we leave this section, are you looking for a unique marketing program to help attract top producing MLOS and branches? Every top producer we have spoken with has said (either verbatim or paraphrasing) "this is exactly what we've been looking for".


Compliance Benefits of the Complete 1003™ Software

The CFPB has made it clear they want lenders to capture and retain more data on every applicant. It's important to note again that when an MLO does a proper job they are already requesting the data contained within The Complete 1003™ but currently (at best) they make a few notes about issues that present potential areas of concern.


The CFPB recently moved against a lender under UDAAP for not properly underwriting a borrower. The CFPB in effect took a QM loan and turned it into a non–QM loan. And the lender's defense was compromised because they couldn't produce all of the data captured by The Complete 1003™.


And if you enter the non–QM market where you lose your safe harbor under ATR, you will be under even greater pressure to prove that you have carefully underwritten each borrower. The Complete 1003™ provides you with a detailed record to prove you have scrutinized the borrower's ATR (including all of the factors required by the CFPB, not just the borrower's income and debts).


If a regulator or a plaintiff's attorney is seeking to go after a lender under either of these statutes, who are they most likely to attack, a lender using The Complete 1003™ or a lender using the industry standard 1003 along with some random handwritten notes? (It's going to be a tall order trying to prove that a file underwritten using The Complete 1003™ wasn't analyzed carefully enough.)


There are other statutes where The Complete 1003™ may aid your compliance efforts. How about Disparate Treatment under the Fair Housing Act and ECOA? Don't they both state that a lender needs to show a business reason to justify their actions? The Complete 1003™ can help give you that business reason as it will show in explicit detail why you reached your underwriting decision.


And what if the HMDA regulations end up changed according to the proposed rules? If under this statute a lender needs to show a more specific reason for their credit decision, The Complete 1003™ will provide that too.


You've also noticed that The Department of Justice is willing to impose severe penalties under the False Claims Act and FIRREA to punish lenders if they sell loans with defects to Fannie Mae and Freddie Mac or provide defective loans for FHA to insure. And the Agencies have asked you to move towards zero loan defects. You simply must improve loan quality and The Complete 1003™ Software can help you do so.


Operational Benefits of the Guaranteed Mortgage Quote™ System

When your MLOS only originate closeable loans and their loan packages are in a more complete state when they arrive in your underwriting department, you will receive concrete operational efficiency benefits. Underwriter touches per file, closed loans per production employee, and total production operating expenses per closed loan will all surely improve when you provide your loan officers with The Complete 1003™ Software.


Also, using The Complete 1003™ will help you reduce buybacks. While many buybacks are caused by technical errors, some are caused by closed loans that do not meet guidelines. The MLO originates a loan that should have never been originated, then the underwriter misses the flaw and the lender has a buyback in waiting on their books. The Complete 1003™ can help prevent those loans from entering the pipeline. In essence, The Complete 1003™ brings your QC function to the point of origination.


Educational Benefits of the Complete™ Software

There's never been a loan officer educational tool anything like The Complete 1003™ Software. It will be especially helpful for new loan officers to see all of the required qualification questions in a logical working order along with the applicable Agency guidelines after each one.


But there are educational benefits for even experienced loan officers and for a lender as a whole. A lender can now compile a list of loans that were initially approved but later ended up counter offered or rejected (with or without a Guarantee payment). By using The Complete 1003™ Software, you can categorize each one with the exact error the MLO made. This list can be distributed to all MLOS so your firm does not continue to make the same mistakes. Areas where an individual MLO and/or your entire staff need more training are more easily identified.


Will you discover that most errors occur when an MLO originates a type of loan they have little or no (recent) experience with (FHA, VA, USDA, condo, self employed, etc.)? Might you institute a policy to require oversight of any MLO (no matter how "experienced") when they handle an application for any type of loan they have originated less than three times in the past twelve months? Certainly the CFPB will approve if you take this proactive stance.


Not Sure If You Want to Offer a Guarantee?

For whatever reason are you uncomfortable with the concept of offering a Guarantee? No problem. The Complete 1003™ Software can be used as a standalone product or in conjunction with Guaranteed Mortgage Quotes™. Again, one click in your Lender Control Panel disables company wide access to the Guarantees. And if and when you'd like to test the Guarantees out, it's easy to choose which loan officers you'd like to issue them.


How Much Does it Cost?

An important part of our business model is that closing and escrow companies currently don't charge lenders (except where required by law) for files they work on that don't close. Therefore, lenders who have higher pull through are subsidizing those who don't perform as well.


We have surveyed many large closing companies and 100% of them are willing to provide discounts for companies using The Complete 1003™ Software because they're able to pass on their cost savings from not working on so many files that fail to close. (We don't have a "required" list of closing and escrow companies. You continue to work with your current vendors. Ask them if they'll give you a discount.) We believe that these discounts will pay for most or all of the licensing fees we charge. We haven't included the exact costs here because we are currently offering reduced rates to our 1st Licensees and those special rates could be discontinued at any time without prior notice.


Are You Concerned About Ramp Up Time and Effort?

This is the beauty of The Complete 1003™ Software and the entire Guaranteed Mortgage Quote™ System. It's a super powerful System but it takes very little time to learn. Your staff will be up and running shortly with just a little guidance from us.


In summary, the Guaranteed Mortgage Quote™ System provides sales, marketing, recruiting, operational, and compliance benefits all or mostly paid for with the funds that a high quality lender like your self is currently wasting because you are subsidizing the closing and escrow company expenses of lenders who can't or won't produce the same level of high quality work. It's an especially powerful System to use in the purchase market where referral sources are risking their paychecks and reputations when they suggest which lender their clients use.


Contact one of our Technology Licensing Partners today and they'll be happy to answer all of your questions as well as provide you with a sample link of The Complete 1003™ Software.