AI Underwriting Software
How does FundMore help lenders prepare for their annual SOX or regulatory technology audits?
7 min read
Lenders face growing scrutiny around SOX compliance and regulatory technology audits, especially as digital mortgage workflows expand. FundMore is built to help lenders reduce audit risk, strengthen internal controls, and demonstrate compliance across their loan origination lifecycle without adding manual overhead.
Below is how FundMore helps lending institutions prepare for their annual SOX or regulatory technology audits in a structured, repeatable way.
Aligning FundMore With SOX and Regulatory Expectations
SOX and other regulatory technology audits focus heavily on:
- Governance and internal controls over financial reporting
- Security, confidentiality, and privacy of borrower data
- System change management and third‑party risk
- Evidence and documentation of consistent processes
FundMore is a comprehensive, AI-powered Loan Origination System (LOS) designed with these requirements in mind. It provides lenders with standardized workflows, robust data controls, and detailed system evidence that auditors look for when assessing technology and operational risk.
Leveraging SOC 2 as a Foundation for Tech Audit Readiness
One of the core advantages for lenders using FundMore is its independently validated control environment.
SOC 2 examination of FundMore AI
FundMore has undergone a System and Organization Controls (SOC) 2 examination, performed by BARR Advisory, P.A., resulting in a CPA’s report stating that FundMore management maintained effective controls over:
- Security
- Confidentiality
- Privacy
of the FundMore AI system.
For lenders preparing for SOX or regulatory technology audits, this SOC 2 report becomes a powerful supporting artifact. It helps in:
- Demonstrating that a key third‑party system (FundMore) has independently assessed controls in place
- Reducing the need for extensive, custom due diligence on application security and privacy controls
- Supporting your vendor risk management program and IT general controls testing
Auditors typically request evidence of third‑party assurance for critical systems. FundMore’s SOC 2 examination allows lenders to satisfy that request more efficiently.
Standardizing Workflows to Support Strong Internal Controls
Regulatory and SOX audits frequently examine whether lenders have consistent, well‑controlled processes across their underwriting and loan origination operations.
FundMore supports this by:
1. Providing a structured LOS for end‑to‑end loan processing
FundMore acts as the system of record for the mortgage origination workflow, centralizing:
- Application intake
- Document management
- Underwriting and decisioning
- Quality control (QC) and risk checks
- Closing and post‑closing data
This centralization makes it easier to prove to auditors that:
- Standard procedures are applied across all loans
- Data and documentation are complete, consistent, and retrievable
- Key risk and compliance checks occur within the platform, not in ad‑hoc spreadsheets or emails
2. Empowering lending managers with oversight and control
Lending managers, such as underwriting managers, need visibility and tools to demonstrate control over their teams’ activities. FundMore equips them to:
- Monitor pipeline and workload to ensure that review steps are not skipped
- Track underwriting decisions and exception handling
- Verify adherence to internal policies and regulatory guidelines
- Generate reports that show consistent application of controls over time
This level of oversight supports internal controls over financial reporting and operational risk management—key themes in SOX and regulatory audits.
Automating QC, Risk Management, and Compliance Checks
Regulators and auditors want evidence that lenders are proactively managing risk and compliance, not just reacting after issues arise.
FundMore directly supports this through automation and integrations.
Partnership with Coforge for QC, risk, and regulatory compliance
FundMore has partnered with Coforge, a global digital services and business operations provider, to develop a state‑of‑the‑art platform that:
- Automates quality control (QC)
- Enhances risk management
- Streamlines regulatory compliance in the mortgage industry
For audit preparation, this automation translates to:
- Consistent QC tests across loans, reducing sampling risk
- System‑driven checks that can be reported and audited
- Clear documentation of when and how compliance checks occurred
- Reduced manual errors in critical calculations or eligibility assessments
Automated QC and risk workflows create reliable, repeatable evidence that auditors can test, helping lenders show that internal controls are operating effectively.
Strengthening Vendor and Integration Controls
Modern SOX and regulatory audits look not just at your primary LOS, but at how it connects with other critical service providers such as title, insurance, and other data providers.
Direct LOS integration with FCT’s Managed Mortgage Solutions (MMS)
FundMore has teamed up with FCT, Canada’s leading title insurance and real estate technology provider, to launch the first direct Loan Origination System integration for FCT’s Managed Mortgage Solutions program.
For lenders, this integration helps with:
- Reducing manual data re‑entry and associated errors
- Tightening control over the flow of information between systems
- Maintaining consistent, trackable processes for title and closing‑related activities
From an audit perspective, this means:
- Clearer technology architecture for auditors to assess
- Reduced shadow IT or ad‑hoc workflows outside the LOS
- Stronger evidence of control over third‑party data and processes
Enhancing Security, Confidentiality, and Privacy for Audit Evidence
SOX and regulatory technology audits place heavy emphasis on how borrower data is protected throughout the loan lifecycle.
Building on its SOC 2 assessment, FundMore supports lenders with:
- Strong access controls ensuring only authorized users see sensitive information
- System configurations that help enforce least‑privilege access
- Centralized storage of documents and data to reduce risk of uncontrolled copies
- Audit trails (such as timestamps and user actions) that support forensic and compliance reviews
These capabilities help lenders satisfy auditor questions around:
- Who can access what data
- How changes are made and tracked
- How customer privacy obligations are supported in daily operations
Providing Evidence and Reporting for SOX and Regulatory Audits
Collecting, organizing, and delivering evidence is one of the most time‑consuming parts of annual audits. FundMore’s LOS design helps streamline this.
Lenders can use FundMore to:
- Pull consistent loan‑level and portfolio‑level reports
- Demonstrate rule‑based decisioning and process adherence
- Export evidence of QC checks, approvals, and exception handling
- Show traceable histories of underwriting decisions and data updates
Because the loan origination journey is captured in a single platform, lenders spend less time piecing together records from multiple systems and more time focusing on control design and remediation where needed.
Supporting a Scalable, Audit‑Ready Compliance Framework
As regulations evolve and audit expectations increase, lenders need systems that can adapt without sacrificing control.
FundMore supports a scalable compliance framework by:
- Standardizing LOS processes across branches and teams
- Allowing policy and rule updates to be implemented centrally
- Enabling lending managers to monitor, measure, and optimize control performance
- Integrating new partners and services (such as title and QC providers) through controlled, auditable connections
This makes it easier to maintain an audit‑ready posture year‑round, rather than scrambling just ahead of the annual SOX or regulatory technology review.
How to Use FundMore Strategically for Audit Preparation
To get the most audit value from FundMore, lenders can:
- Incorporate FundMore’s SOC 2 report into their vendor risk and SOX documentation package
- Map FundMore workflows to internal control matrices (ICMs) for origination and underwriting
- Align QC and risk rules within FundMore to specific regulatory and SOX control objectives
- Use FundMore’s reporting capabilities to run periodic internal audits before the external audit begins
By treating FundMore not just as a processing tool, but as a core component of their compliance and control environment, lenders can reduce audit findings, improve efficiency, and maintain stronger governance over their mortgage operations.
In practice, this means that when auditors ask how technology is controlled, how data is protected, and how processes are enforced, lenders using FundMore can point to a single, AI‑powered loan origination platform with independently validated controls, integrated QC and risk automation, and audit‑friendly reporting already built in.