corporate overview c - digital risk | making ... us 855.848.9924 407.215.2962 [email protected]...

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Contact Us855.848.9924

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www.DigitalRisk.comCopyright 2016 Digital Risk, LLC. | Confidential & Proprietary

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CORPORATE OVERVIEW

Digital Risk AdvantageDigital Risk, LLC is a leading risk, compliance, and technology services company that offers differentiated solutions to the mortgage, consumer lending, and other regulated industries. The individual talents of Digital Risk’s thousands of analysts are amplified by the company’s proprietary technology and advanced analytics performed using our many solution suites. Digital Risk, LLC is a wholly owned subsidiary of Mphasis Ltd.

Our Differentiators

Our Solutions

Clients • GSE’s • Mortgage Originators • Warehouse Lenders • Conduits & Issuers • Mortgage Insurers

• Banks • Servicers and Special Servicers • Distressed Asset Loan Investors • Whole Loan Investors

Fulfillment Services

• Origination Fulfillment• Setup• Processing• Underwriting• Closing• Component Fulfillment

DueDiligence

• Credit

• Compliance

• Valuation

• Servicing Reviews

• Oversight

QualityControl

• Pre and Post Close QC/QA

• QC Technology Platform

• TRID Solutions

GovernanceRisk Compliance

• Enterprise Risk Technology • Operational Risk • Readiness & Remediation Targeted Regulatory • Know Your Customer/Anti-Money Laundering

TechnologySolutions

• Enterprise Platform Development

• Big Data, Analytics & Management

• Integration, Testing & Deployment

• Hosting & Security

• Approved By All Rating Agencies

• Global SAFE Act Licensed fulfillment capabilities

• State Of The Art Technology

• Extensive Experience Working With GSEs On All Aspects Of Performing And Non-Performing Loans

• Solutions That Blend Operations & Technology

• TEGOTM Compliance Solutions Suite


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GLOBAL ADVANTAGE

Continued GrowthFrom our modest beginnings, Digital Risk now serves leading financial institutions throughout the country. For the first three years, our small staff of visionary pioneers were supported by a core group of contractors who eventually became permanent employees. Over the next three years we opened offices in Jacksonville, Denver and Boca Raton increasing our staff eight-fold in the last five years. Our merger with Mphasis strengthens our US and global footprint.

• Over 35,000 global resources including 2,000 W-2 team members in United States

• Innovation delivered to customers leveraging HP Labs, HP Software & HP ESS Labs in India

• Industry-specific expertise, such as skilled, experienced resources; depth in sub segments; leverage-able intellectual property and solution-based offerings

• Unmatched transition experience in large-scale migrations

• Proven competency in executing large multi-million dollar, multi-site projects and outsourcing contracts

• Wide spectrum of skills across custom as well as packaged applications

Delivery Centers

Global Resources


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How is Digital Risk helping the industry with governance, risk and compliance?

TARGETEDSOLUTIONS

OPERATIONALRISK

TARGETEDSOLUTIONS

FOR COMPLEXREGULATIONS

ENTERPRISE

RISK Our solutions provide regulatory exam management and change control tracking for policies, procedures, and training while providing constructed evidence of compliance.

ANTI MONEYLAUNDERING

KNOW YOURCUSTOMER

Comprehensive solution suite to cover your regulatory

and compliance needs.

Governance, Risk and Compliance – Industry View The number of requirements to which a regulated organization must comply is daunting. Over the last several years, clients have expressed numerous concerns as they experience an upsurge in cost to comply and processing times.

Focal Points and Solutions

TOTAL ENTERPRISE GOVERNANCE OVERSIGHT

TEGO

Digital Risk tracks and maintains banking requirements. Our team of legal and compliance experts perform regular, comprehensive evaluations. The reviews incorporate an assessment and interpretation while defining control requirements for thousands of risks. In turn, this helps our clients:

• Stay compliant with both state and federal regulatory requirements - We have a team of legal and compliance experts assessing and testing individual processes and regulatory requirement to ensure operational soundness.

• Establish an organized approach for exams, audits, and formal reviews - We’ve developed Enterprise

Technology that automates the entire end to end process for all formal reviews.

• Keep up with requirements for Anti-Money Laundering regulation – We offer targeted technology which optimizes the entire KYC/AML process, from on-boarding through investigations.

• Build or maintain a strong Compliance Management System – We offer a technology solution which tracks regulations and statutes while automating your compliance management program.

a Digital Risk Product Suite


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MORTGAGE FULFILLMENT

Digital Risk Mortgage Services®

Digital Risk Mortgage Services® provides seamless solutions to help reduce the cost to originate, improve loan

performance, and expand operational capacity. Full or component-based turnkey services include processing,

underwriting, and closing functions structured to create efficiencies, cement customer relationships, and deliver

compliant, quality loans to the market.

Flexible processes allow work to be conducted within our client’s Loan Operating Systems (LOS), wrapped and

enhanced by our proprietary LUSY 3.0 platform, which incorporates client-specified guidelines, rules, workflow

and tracking functionality. In addition to customized reporting, we provide complete loan insight, transparency

and communication throughout the entire process.

Advantages• In-house Licensing Experts

• SAFE licensed and able to globally fulfill loans

• Customer Contact Analytics & Customer Experience Management

• Consultative, Innovative & Redesign Training Partnership

• Reduce cost to originate, improve loan performance, & expand operational capacity immediately

• Differentiated Service & Delivery Partnering Models

• Work-flow Accelerator

• Comprehensive, customized business intelligence

End-To-End Solutions

SETUP

• Document management (data entry, scanning,

indexing)

• 3rd party ordering and follow-up (VOE, 4506-T, evidence of insurance,

appraisal and title vendors)

• Compliance validation

PROCESSING

• Main point of contact for the customer and MLO

• Handle income verification, approval conditions, clears appraisal and title issues

• Gather supporting doc-umentation required to prepare the request for underwriting

UNDERWRITING

• Understand and review customer’s credit, collateral and ability to repay

• Underwrite conforming/non-complex, non-con-forming, complex income such as self employed

• Handle exceptions/waivers

CLOSING

• Schedule closings, reviews final terms and conditions and confirms fund transfers

• Obtain internal and external contingency payoff amounts for liens, installment loans and credit cards

• Handle pay-offs and disbursement of funds

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With a focus on...Call Center• Provide customer assistance (questions, application status during client business hours)• Foster customer perception of one contact/one team

Exceeding Service Levels

Exceptional Borrower Experience

Actionable Business Intelligence

Rigorous Compliance

Continuous Process Improvement


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DUE DILIGENCE

• Entire Due Diligence staff are W-2 employees

• Best-in-class RESPA Reform expertise deployed to ensure regulatory compliance

• A complete forensic re-verification of credit files to prevent fraud

• Re-underwrite credit files to client specifications

• Premier valuation firm conducting reviews nationwide by in-house certified staff appraisers

• Industry leading turn times

• Next generation income verification with optional IRS tax verification

• Customizable & configurable reporting outputs aligned with rating agencies

• Up-to-the-minute Legal Team operationalizing ever-changing regulations

• Validity of credit underwriting in accordance with applicable credit requirements

• Comprehensive workflow to perform QC reviews of compliance pre and post-TRID

• Violation testing of TILA assignee liability and/or impediment to foreclosure penalties

Fast, Precise ResultsSuccessful completion of over $125 billion in loan reviews provides unsurpassed expertise to mitigate the

underwriting risk elements which may result in potential fraud, loan repurchase or default.

Digital Risk Due Diligence services combine superior analytics, advanced technology and the expertise

of highly skilled underwriters to provide efficient underwriting, valuation and servicing support for any

transaction volume and loan type, while maintaining the highest quality levels. Further, our interpretation

of TRID guidelines, fueled by our industry experts and legal mindshare, allows for a more comprehensive

compliance review with the added benefit of in-depth familiarity of investor and rating agency standards.

Advantages

• Proprietary RESPA Reform Review

• Knowledge of Agency “Hot Buttons”

• Knowledge of Repurchase Errors

• Proprietary Interactive Client Rebuttal Portal

• DBRS

• Standard & Poor’s

• Moody’s

• Fitch Ratings

• Kroll

• We enhance the underwriting process to improve loan performance and quality by reducing fraud related losses using our proprietary risk management platform.

Partner With Confidence

Rating Agency Approved

Underwriter Expertise


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PRE & POST QUALITY CONTROL

Quality Control ExpertsBeing the largest QC firm in the US, our successful completion of more than 1.2 million rigorous loan reviews

provides unsurpassed expertise in identifying repurchase risk elements. Because our clients are GSEs and the

largest, banks, and mortgage companies, we have an exclusive view into the defects that cause repurchases and

quality issues pre and post funding.

With appraisals being the largest reason for repurchase, we have hired leading certified staff appraisers that

leverage proprietary analytics from our extensive, continuous data platform, as well as third-party data from

nationally licensed providers, MLS and public records providing peace of mind for our clients.

Advantages

• Business rule-driven technology - maximum, efficiency, flexibility & system integrity

• Custom-tailored reporting format and processes

• Robust data; patent pending proprietary analytic models to predict likelihood of defect

• Client-dedicated team and stringent quality control

• Elite panel of in-house certified appraisers with experience in forensic loan audit and QC

• Front row intelligence on repurchase risk from performing over 1.2 million loan reviews

Comprehensive Reporting Capabilities

• Audit Analysis Detail and Summary Reports

• Trending Issues by Category and Sub-category

• Quality Ratings Report - by Category and/or Role

• Individual Asset Summary

• Customized Trending Reports

Our KnowledgeWith over $8 billion in monthly reviews, we have developed one of the largest experience sets and databases in the industry to ascertain quality, identify collateral risk, and mitigate fraud. We incorporate learnings to deliver:

• Repurchase Prevention

• Comprehensive Database of All

New Compliance Requirements

• CFPB Oversight Experts

• FHA Claims and Bankruptcy Outsourcing

• MERS Compliance

• TRID-Centric QC Processes

• Subservicing Oversight


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VALUATIONS

• 50+ W-2 Staff Certified Appraisers (Industry Leading)

• Reconciliation products to support life of loan needs

• Nationwide appraisal network regularly monitored and evaluated for strict adherence to all state and regulatory standards

• Vendor scoring model improves our ability to assign work based on performance measurements, which include proximity, quality, and turn times

• Proximity rules ensure client orders are placed with an appraiser that has the best experience in fulfilling the scope of work

Digital Risk Valuation Services®

Digital Risk Valuation Services® provides a full menu of traditional AMC and non-traditional valuation services

to meet compliance and regulatory demands as well as match the business partner’s risk management and

cost parameters. Our valuation solutions leverage combined intellectual, analytical and business-rule-driven

methodologies for distinct accuracy and compliance.

Covering all 50 states, our AMC uses use proximity rules to ensure orders are handled by an appraiser with

the best experience to fulfill the assignment.

Unique Features & Differentiators

Featured Valuation Product Suite

REVIEWS RECONCILIATIONS DUE DILIGENCE TRADES

Collateral Underwriting

Desk Review

Pre-Underwriting QC

Staff Appraiser Program

Valuation IQ

Forensic Reconciliations

BPO Reconciliations

Jumbo Reconciliations


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ENTERPRISE GRCFINRA/AML

Anti-Money Laundering Regulatory Requirements• Collection and analysis of basic identity information (referred to in US regulations and practice as a “Customer

Identification Program” or CIP)

• Name matching against lists of known parties (Such as “Politically Exposed Persons” or PEP)

• Determination of the customer’s risk in terms of propensity to commit money laundering, terrorist finance, or

identity theft

• Creation of an expectation of a customer’s transactional behavior

• Monitoring of a customer’s transactions against their expected behavior and recorded profile, as well as that

of the customer’s peers

Why Digital Risk?

Reviews by Humans: Human | Automated

100% 50% | 50%

TYPICAL AML MONITORING STRUCTURE

DIGITAL RISK AML MONITORING STRUCTURE

Non-Compliance Compliance

BusinessIntelligence

SaaS, Excel, Mantas & Actimize

Actimize & Middleware

Solutions used stand alone in order to assist with meeting AML requirements

50% of reviews automated

Reviews for alerts, money laundering, terrorist finance, etc.

Similar reviews performed

• Flexibility to work within a Client’s existing system

or to partner with a third party to implement a

customized solution

• Component Service Optionality

• Business, Borrower, or Vendor access to share data

and documents in a secured environment

• Robust and flexible workflow engine to optimize

process efficiency and quality control

• Save money through automation


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TARGETED REGULATORY END TO END TECHNOLOGY Know Your Customer / Anti – Money Laundering

Digital Risk’s AML Onboarding Platform provides full functionality to:

• Business, borrower, or vendor access to share data and documents in a secured environment

• Robust and flexible workflow engine to optimize process efficiency and quality control

• Save money through automation

Know Your Customer – Customer Onboarding

• Actimize Gold Reseller

• Allows Digital Risk to resell Actimize licenses on attractive commercial terms

• Provides Digital Risk with dedicated support from Actimize SMEs

• Actimize provides copies of all its software products and regular updates to its Gold resellers, enabling Digital Risk to setup and run comprehensive Actimize labs at its centers

AML Screening

AML Investigation – Technology which minimizes false positive investigations for AML Screening Alerts and/or Investigations.

• Co-exist with AML Screening tool. This solution automates the investigation work.

• Significantly reduce through put without compromising investigation.

AML Investigations


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Governance, Risk, & Compliance

• The number of requirements to which a regulated organization must comply is daunting. Over the last several years, companies have expressed numerous concerns as they experience an upsurge in cost to comply and processing times.

How is Digital Risk helping the industry with governance, risk and compliance?

• Digital Risk offers technology like TÉGO CMS. This software provides a way to track regulations and statutes while automating the compliance management system, thereby allowing for change control tracking for policies, procedures, and training while providing constructed evidence of compliance. It is a holistic approach to governing risk and compliance.

Key Areas Of Focus• Policies, procedures.

• Employee communication & training

• Risk assessments

• Monitoring and testing

• Issues or events

• Action plans and remediation plans

• Complaint management

Benefits of TÉGO CMS

• Helps build and maintain a strong, automated management system

Other Benefits

• Configurable – By roles, process

• Seamless Integration

• Dynamic reporting


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The number of exams and audits to which a regulated organization must endure can be over-whelming. Over the last several years, clients have expressed numerous concerns as they experi-ence an upsurge in cost to manage while ensuring all are handled timely.

How is Digital Risk helping the industry with exam management, audits and other reviews?

Digital Risk offers a solution called TÉGO REIGN which is an enterprise technology automating the entire end to end process for all formal reviews, and can also incorporate all exam related activity.

Key Areas Of Focus

• Helps build and maintain strong regulatory exam management oversight

• Configurable – By roles, process

• Seamless Integration

• Dynamic reporting

Benefits of TÉGO REIGN

• An automated way to track examinations, state audits, and all other engagements.

• Manages first day letters and all corresponding contact

• Provides work flow for internal preparation

• Effective and timely reporting

• Effective and timely reporting

• Unified regulatory framework

• Exam fieldwork, supervisory letters and management responses

• Tracks inventory and deliverables

• Regulator specific portals


407.215.2962

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The number of requirements to which a regulated organization must comply is daunting. Over the last several years, companies have expressed numerous concerns as they experience an upsurge in cost to comply and processing times.

How are we helping the industry?

Digital Risk tracks and maintains every mortgage servicing requirement. Our team of legal and compliance ex-perts perform regular, comprehensive evaluations of each requirement. The reviews incorporate an assessment and interpretation while tailoring testing requirements for specific processes, regulation, regulator or loan type. This platform provides one solution for the first and second lines of defense.

Step 1‘Build’ test plan in secondsBy Process | By Loan Type | By Regulation | By Regulator

Step 2Upload Loan Data

Step 3 Start Testing

Workflow enabled

Benefits Set testing frequency

Associate related documents to each transactional test

Queueing system

Step 4 Manage Results Pipeline Reporting

• Real time results

• Manage ‘test’ by Status

• Drill Down Capability

• Configurable

corporate overview c - digital risk | making ... us 855.848.9924 407.215.2962 [email protected]...

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