Encapture, a high-growth SaaS platform that helps banks like Wells Fargo, Frost Bank and Truist automatically extract and validate key information from loan documents, announces a new data validation solution that will enhance compliance reporting in line with the expansion of CRA (Community Reinvestment Act). Following the recent success of their HMDA modules, the introduction of the CRA expansion module will further support regulatory compliance capabilities.

The base model is designed to prepare banks for the 1071 requirements related to small business lending. It includes advanced capabilities to assist CRA teams in analyzing Gross Annual Revenue (GAR) and other complex components. This expanded CRA offering will serve as a comprehensive kit for managing small business lending documents and ensure a seamless transition to 1071 compliance. The enhanced functionality will also broaden CRA applications, incorporating small business lending documents and serving as a foundational model for future 1071 requirements.

“It is crucial to be ready for any and all consequences once regulations hit, and the best way to achieve data excellence is through automation,” says Will Robinson, CEO of Encapture. “Whether a compliance team is responsible for reporting CRA, HMDA, or 1071 application data, Encapture’s validation solution is giving financial institutions the tools to stay competitive by reporting accurate and complete data in a timely manner.”

In fast-growing banks, accurate data is crucial for assessing fair lending and CRA performance. Lack of data integrity delays CRA examinations and triggers costly scrubbing and re-scrubbing efforts. Encapture automatically identifies data inconsistencies, reducing human error and eliminating tedious data review tasks.

“Regulatory compliance and data integrity are challenging, and there is a lot at stake when you get it wrong,” says Tory Haggerty, best-selling author and compliance professional. “If you have patterns or practices of reporting inaccurate data, you will face regulatory scrutiny, adverse examination ratings, and possible civil money penalties. Data integrity does not have to be difficult, and it takes a lot of time and resources to do it right; however, Encapture’s software is changing the game.”  

Harnessing the power of machine learning, Encapture identifies data discrepancies across the Loan Origination System (LOS), compliance reporting tools, and underlying source documents to validate user interfaces and flag inconsistencies. This capability empowers compliance teams to:

• Identify and locate CRA reportable loans
• Reduce reporting risks and lower overhead costs
• Provide clear chain of custody and audit trails
• Create new data validation workflows without deploying IT resources

Using Encapture, lenders can ensure 100% loan review penetration through a process that is much more reliable than traditional, manual sampling methods by extracting data automatically from verified documents, reduce fraud false positives, increase lending capacity, and eliminate data scrubbing. To learn more about this solution visit https://encapture.com/compliance/.