| Total loan value of verified, validated and certified loan closings | Total dollar amount of transactions identified as erroneous / fraudulent and then corrected and/or redirected with FundingShield Certification | Cost of FundingShield Certification versus Dollar Value of Potential Client Loss Exposure: | Top 25 mortgage lenders clients serviced |
| ~ $60 Billion+ | ~ $10 billion+ | >0.05% | 8 |
FundingShield develops product toolkit for State IOLTA Sections:
FundingShield (“FS”) works with State IOLTLA sections to assure that attorney managed and controlled bank accounts are properly registered for the benefit of mortgage market participants. This due diligence “behind the scenes” prior to funding of mortgage transactions to closing attorneys, greatly enhances the effectiveness of the state’s IOLTA laws and is a distinct and unique enforcement mechanism that many of the states have access to assuring that attorneys are using IOLTA accounts as required by law. FS also assures that mortgage lenders get the benefit of state monitored accounts of their closing attorneys to prevent closing attorneys from continuing in business after using less than best practices and either bouncing checks or having negative balances in their escrow accounts. FS is rolling out its tools and procedures for tracking, screening and confirming compliance with State IOLTA laws to the states as an added service. These same tools can be leveraged by lenders, attorneys and auditors to assure greater compliance, reduced risk and a smoother workflow.
Clients
Any mortgage lender or servicer who work with attorneys handling escrow funds in mortgage closings or foreclosure sales in the US.
Problem
Closing Attorneys who do not comply with State IOLTA laws exhibit a propensity for lack of compliance and may be wrongfully obtaining client escrow fund interest. Further such attorneys could be operating accounts where escrow funds are going to accounts where checks are being bounced without any monitoring and hence no knowledge by the authorities putting market participants at risk.
Solution
Fundingshield works closely with each State’s IOLTA section to assure that attorneys are properly registered with the IOLTA organization and are utilizing the proper IOLTA accounts when receiving funds from mortgage lenders to fund the closings. We verify that the title of the accounts meet the naming conventions, the current licensing of the attorneys and the corporate status of the law firm.
By enforcing state specific lending regulations, including the unauthorized practice of law requirements, FundingShield assures state compliance and significantly reduces the risk of loss in the mortgage funding process.
About FundingShield
FundingShield is a leading software enabled services company and the only provider of active loan level diligence for closings to the residential mortgage industry. The Company’s array of services provides active verification and validation at the loan level for mortgage closings and detailed analysis of the documentation used. Our products & services include:
- Verification and validation services at the loan level of closing documents for lenders, insurers and title companies
- Confirmation of title insurance coverage for lenders backed by FundingShield’s GUARDIAN CERTIFICATE
- Automated compliance data management systems for 3rd party service providers of lenders, title and state agencies & appraisers.
- Consulting to law-firms, insurance companies and the major audit firms nationally
- Re-underwriting of the closing process and documents including a loan level review of the closing agent, accounts, licenses.
- Specialized underwriting services to insurance companies and lenders as well as closing process audit reviews.