Automating mortgage document production can mean more thanmaking it more efficient and cost effective to bring that pile ofpapers to the closing table. It can also mean automating mortgagecompliance.

That is part of the message from MRG Document Technologies, aDallas-based firm that specializes in producing mortgage documents.Outsourcing mortgage document production can mean building mortgagecompliance into the document process too.

This is a particular niche for MRG, a firm that is part of themortgage banking law firm, Middleberg Riddle & Gianna.

The law firm started the practice group in document preparationto offer compliance and technology support for the ever morecomplex disclosure and documentation environment faced bysingle-family mortgage lenders.

“What we found is that we could build in compliance checks intothe mortgage document process so that lenders can focus on theother parts of the mortgage process,” said Laura LaRaia, anattorney and director of customer service for the firm.

LaRaia explained that the firm has been including compliancechecks into its document production for some time, but the wave ofregulatory changes from recent laws, particularly the Real EstateSettlement Procedures Act, makes compliance checks moreimportant.

LaRaia explained, for example, that changes in RESPA rulesprevent mortgage lenders from increasing certain fees related tothe mortgage process by more than 10% over what are included in thestandardized good faith estimate. Building compliance into thedocument production process lets the firm alert the credit unionthat one of its fees has come in too high. Before the CU would haveto stop the closure process and go over some of the proceduresagain with the borrower.

“This can make a significant difference in the cost andtimeliness of the mortgage process,” LaRaia said.

The $2.1 billion State Employees Credit Union of Maryland is oneof the credit unions that has outsourced its mortgage documentproduction to MRG. The credit union has granted roughly 1,200 realestate loans so far this year worth almost $156 million, accordingto NCUA's data for the end of June.

Kevin Kesecker, loan production manager for SECU said that thecredit union had automated its second-mortgage and HELOC lendingfirst but has begun to automate its first-mortgage business aswell.

He said that the interface with MRG and the credit union'ssecond-loan and HELOC platform had cut about 10% off its turnaroundtime, dropping what had been15 days for an application to 13 days.He said the credit union expected similar results from automatingthe documents on its first-mortgage program.

“Managing SECU's mortgage compliance in-house can prove verycostly and time consuming, ultimately affecting member service,”Kesecker said. “With MRG producing our HELOC document packages, weare guaranteed to be in full compliance and are able to focus moreresources on assisting members.”

Kesecker explained that SECU had not had any instances yet whereMRG's compliance efforts had caught major mistakes in SECU loandocuments, but said that the firm had helped the credit union offerand process mortgages more smoothly and efficiently as well.

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