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Member Advantage Mortgage Makes Easy Transition to New RESPA Regulations Using XetusOne Loan Origination System

As Lenders Tackle the Difficult Task of Compliance With New RESPA Regulations, XetusOne Provides a User-Friendly Solution (February 02, 2010)

PALO ALTO, CA -- (Marketwire) -- 02/02/10 -- Member Advantage Mortgage (, based in Ada, Mich., with assets of $4 million, started the new year with a stress-free transition to the new RESPA regulations with the use of Palo Alto, CA-based Xetus' ( XetusOne Loan Origination System. "The transition to the new RESPA regulations was as painless as possible," said Jennifer Durham, Chief Operating Officer for Member Advantage, a subsidiary of CUSO Development Company, LLC ( and majority owned and operated by seven credit unions in New Hampshire, Virginia, Massachusetts, Pennsylvania, Nevada and the District of Columbia. "We didn't have to figure out anything with this change. We simply had to turn on the computer and the LOS handled everything."

Durham said when she first heard about the RESPA changes, she knew the transition would be a huge challenge, one that would be difficult for credit unions to monitor and police. The RESPA changes, which significantly altered the disclosure process for residential mortgages, required new versions of the Good Faith Estimate and HUD-1 Settlement document. "Xetus' response to the challenge is something that our company has not seen from other software companies," said Durham. Xetus modified its LOS user interface to provide new RESPA-compliant versions of all affected forms and to include user-friendly features that help clients grow accustomed to the new regulations.

Scott Stein, Xetus' Vice President of Sales and Marketing, said the ease of compliance was owed in part to the agility of XetusOne's "software-as-a-service" (SaaS), in which users access the service through an Internet browser while modifications to the LOS are made in Xetus' data center. "There is no software [for clients] to install and maintain," said Stein. "It makes it very easy for clients to rest assured they have the latest compliant version of the software they're using because we implemented the RESPA-compliant changes in our data center without impacting their operations or IT infrastructure."

Minimal Training Required with RESPA-Compliant XetusOne

Durham said XetusOne provides detailed videos right in the product, making the complex regulations much easier to understand. Users were introduced to the new HUD-1, GFE and interface features the first time they logged onto the LOS in 2010 through a release note and videos connecting the new user interface features to the new regulations. "The videos provided our loan consultants with a lot more insight and a practical way to understand the changes. This was definitely more user-friendly," said Durham. "Some of our loan consultants took classes through title companies in their various states and had gone away terrified and nervous about the changes, but Xetus' videos gave them a better grasp of the subject."

User-Friendly Features Assist Transition

The modified LOS interface provides several key user-friendly features that assist clients through the transition. Using XetusOne, loan officers have the ability to convert loans initiated prior to 2010 to the format required by the new RESPA regulations. "We have a one-click, one-step process to convert the old record to the new without the user having to start the file over or re-input," said Stein. Durham said this function was valuable for Member Advantage Mortgage, saving it the time and effort of converting as many as 75 loans.

XetusOne also gives users stepping stones as they familiarize themselves with the new forms. Because the new regulations limit how much certain costs can change after the initial disclosure, the interface provides a comparison of GFE and HUD-1 charges, and tracks the changes in various costs from the initial disclosure to the closing. The interface immediately flags any value that falls outside the permitted variance with a red warning box, a feature which Durham said she found most useful because loan consultants can immediately see the issue and must address it.

"Another one of the most user-friendly features is the way the interface shows both the HUD-1 line numbers and the GFE block numbers on the GFE," said Durham. "The GFE still looks the same, so it's easy to make the transition." Stein said that it was crucial to weave the spirit of the strict regulations into the required continuity from GFE to HUD-1. "That was the real user interface challenge," he noted.

XetusOne's ability to track and show the progression of changes in each loan file is especially useful for auditing purposes. "It shows the progress of the loan, from the first change, to the second, and to the third. This feature definitely helps us put our hands around the changes and allows us to go back and review the progression. We sell loans not just to Freddie Mac but also to credit unions, and this allows us to restructure loans and know what we're dealing with," said Durham.

Internal Transparency and Collaboration Allow Compliance Oversight

XetusOne's transparency allows a manager with loan officers in the same facility or thousands of miles away to look deep into any loan in process and confirm that it is in line with the new regulations. Users can continue to collaborate throughout the loan process and work in tandem regardless of where individuals are located and who is handling a particular loan. "This collaboration combined with the LOS' inherent transparency is all the more advantageous because a manager has the capability to quickly work with any loan officer who may be struggling with the new compliance regulations," adds Stein.

About Member Advantage Mortgage

Founded in 2006, Member Advantage Mortgage ( is a wholly owned subsidiary of CUSO Development, LLC, majority owned and operated by leading credit unions across the US. It is a full service mortgage lender with an experienced staff offering professional advice in every area of mortgage lending, from purchase to refinance.

About Xetus

Xetus ( pioneered the development of "software as a service" (Saas) in the mortgage industry. Users access its service through standard Internet web browsers, while Xetus updates the product transparently. Xetus provides powerful, easy-to-use mortgage loan processing to lenders, brokers, service providers and investors collaboratively in real-time over the Internet in a secure environment. Xetus is partnered with some of the country's major credit organizations, underwriting and selling entities, mortgage insurers, valuation and compliance providers.

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