The Advent of Mavent: An Irvine, California-Based Company Is Coming to the Rescue of Mortgage Lenders Everywhere That Are Struggling to Comply with a Mountain of New Laws and Regulations. Their Solution Is So Effective, Even Fannie Mae Is Using It

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MAVEN: ma*ven or ma*vin; noun. A person who has special knowledge or experience; an expert. [??] In the world of loan compliance, that definition could apply to Irvine, California-based Mavent Inc., a provider of automated compliance services for the mortgage industry. [??] Mavent's name is a deliberate play on the Hebrew word "maven," says Tim Green, the company's founder and chief executive officer. "We basically manage what we refer to as an expert system [for mortgage compliance]," Green says. [??] Green, who also serves as chairman and director, laid the groundwork for Mavent in 1998, and the company was incorporated in February 2000. Today Mavent provides automated compliance services to several top-20 lenders, as well as to Fannie Mae. [??] The company's flagship product is the Mavent[R] Expert System, a rules-based engine that applies a model compliance decision-set to every loan in a client's pipeline or to entire pools of whole loans. The automated system submits loan data for reviews against nearly 300 legislative acts, 200 license types, and the rules and regulations of more than 60 regulatory authorities, according to the company. [??] Most of Mavent's lender clients are large and have multiple loan origination systems (LOSes), Green notes. "We typically connect to their LOS and take in loan data from all of their origination channels. We pull certain data elements from the systems at various points that are either status- or workflow-driven, and run a review," he says.

Mavent reviews 100 percent of its lender clients' loans, as opposed to a small sampling, he adds.

Green's experience in the legal, financial services and real estate fields led to his interest in automating compliance for mortgage companies. He holds a law degree from the University of Kentucky College of Law, Lexington, Kentucky. He's spent much of his 30-year career as the chief executive and chief operating officer of firms in the real estate and financial services industries.

Prior to starting Mavent, Green was senior vice president of operations in the real estate services division of Maryville, Tennessee-based Clayton Homes Inc., now a subsidiary of Omaha, Nebraska-based Berkshire Hathaway Inc. Green also served as president and chief operating officer of real estate investment company Clayton Williams and Sherwood Inc., Newport Beach, California. The company is now known as CWS Capital Partners LLC.

In his work within the real estate and finance fields, Green saw an obvious need for a more efficient approach to ensuring mortgage loans met all legal and regulatory requirements--a function performed manually by humans until fairly recently.

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"I don't know if there was any 'a-ha moment.' But over the years I saw more and more regulations for financial institutions pile up," he says.

Green was also influenced in the mid-1990s by Philip Howard's book, Death of Common Sense: How Law Is Suffocating America. "It's about the explosion of regulatory law in America. When I went to law school back in the 1970s, I had a couple of tax courses and administrative law courses. But there weren't all these mounds and mounds of regulation you have today," he says.

As the regulation of financial institutions became more complex in the 1980s and 1990s, Green watched a parallel explosion in computerization and automation, he says.

Automating the compliance review of mortgage loans seemed like a logical step. "I would visit mortgage operations and see spreadsheets or charts on the walls. Across the top would be a list of states, and then down the side would be the fees that you could charge for a loan in each state. People were using these little spreadsheets or matrices to figure out what was appropriate to charge in each jurisdiction," Green says.

"That kind of turned on a light in my head--that's the type of process that can clearly benefit from computerization," he says. …