DocuTech Automates Management of Prepayment: 'Companies need to look to experts in the field to help them through turbulent times and allow them to focus.'.

NEW YORK -- With increased government scrutiny on loan compliance in the currently turbulent mortgage industry, prepayment penalty configurations have been a difficult process to manage for lenders. Each state, and many investors, carries different requirements and configurations for applying prepayment penalties to mortgages.

As a means of ensuring all prepayment configurations are compliant with local and investor guidelines, DocuTech Corp., Idaho Falls, Idaho, a provider of mortgage documents and compliance technology, has upgraded ConformX, the company's automated document creation and verification software.

The new release of ConformX 3.10 adds a new process for managing prepayment penalty configurations. The upgrade manages more than 500 prepayment penalty configurations through an intuitive, direct interface with loan origination systems.

The addition of prepayment penalty compliance to ConformX will allow users to have updated prepayment penalties automatically added to the loan.

"The amount of time it takes to manage all these rules is tremendous. We have a full-time staff of 30 to 40 people doing nothing but tracking changes and working on these compliance issues. Even for larger institutions, it takes a tremendous amount of manpower to focus on the peripherals and not on the ball, which is, to close loans," said Monte Larsen, chief marketing officer at DocuTech."

Mr. Larsen added that ConformX 3.10 is Web-based, so everything is updated immediately. Lenders have access to a 24/7 closing machine to help them make more money and close more loans.

Traditionally, a difficult component to manage, prepayment penalties have been simplified with ConformX 3.10. It includes more than 500 prepayment configurations that meet all federal, state and investor requirements. A rules engine simplifies the ...