Fundingshield is the mortgage industry’s solution to closing agent compliance and risk management. Our solutions work at the loan transaction level, counterparty risk level and enterprise level leveraging our technology and optimized workflows.
Fundingshield’s Solution for Closing Agent Management include our:
Wire account verification system (WAVS)
Transaction level closing agent due diligence
Verification of closing agent license / CPLS / UPL state compliance (Guardian service)
Approved closing agent list management
Payoff confirmation service
Insurance underwriter due diligence services
FundingShield provides the Industry’s highest level of protection against loss of funds due to inaccurate and/or insufficient documentation, diversionary wire practices or parties closing in excess of their coverage limits from closing agents or attorneys which could jeopardize closing protection letter (CPL) coverage.
Fundingshield is working with various groups to create a safer settlement environment that can keep up with pace of evolving risks posed by closing agent fraud.
Lender Trade Organizations
Technologists (Audit & risk system developers, blockchain focused groups)
GSE’s (Fannie and Freddie) Insurance Companies
Over $105 billion
Closing Value Monitored
Circa $19 billion
Flagged for Closing Deficiency or Inconsistency
Circa $1.2 billion
Closings Halted By Our Clients or Redirected
What We Offer
Transaction level closing agent due diligence
Verification of closing agent license / CPLS / UPL / compliance (Guardian Service)
Our compliance solution for transaction / loan level monitoring for fraud and compliance risk management in the loan funding process.
- FundingShield analyzes the closing agent data associated with the transaction for potential fraud and errors, verifies that proper CPL coverage is in effect, depository account is in the proper name of the covered party and is ran against our 30,000+ party database.
- Fundingshield then securely transmits to the our lender clients the verified wire instructions in an encrypted format for disbursement along with a FundingShield Certification to the originator, warehouse or correspondent lender (as applicable) prior to release of funds.
- This Certification also assures that the closing agents are in compliance with state and internal policies and laws.
- FundingShield can also save your staff time and money by procuring the corrected closing protection letters directly from the title insurance companies, along with the wire instructions for each funding and deliver it to your funding intermediary or treasury area directly for security purposes (Lenders/Clients are required to supply Fundingshield with original document for review to start the process).
- Our process aids in eradicating inter-firm fraud schemes and intra-firm/marketplace fraud schemes as we act an independent third party to the closing to verify all information, use of correct forms, bank account title/name and number matches, licensing and ability for closing agents/attorneys to close in a jurisdiction.
- If a defalcation should occur Fundingshield will work with your legal staff to streamline the process for recovery of funds from the insurer.
We are excited and pleased to say that we have never had any client suffer a loss on a Guardian Service verified loan to date.
Third Party Service Provider Portal for Compliance
- A 3rd party service provider (“TSP”) & vendor compliance automation system to manage 1000’s of relationships efficiently and per your firms own risk specifications.
- A live approved party list across TSPs and Vendors
- Ability to enforce use of only approved parties, create audit logs
- Escalation management by vendor
- Zero Upload work required (Vendors self register)
- User’s set their own TSP or Vendor requirements per TSP/vendor type needed to be an approved party of the firm (the rule sets are often called a “schema”) which could include documentation, contracts, background checks, licensing, insurance etc
- User uploads name and email list of TSP / vendors
- System auto invites the TSP / Vendor into system & each TSP enters all information, not you the user!
- User can set customized control queries on any type of TSP/Vendor type managed in the system to create queries and audit logs confirming use of approved parties throughout the loan fulfillment cycle.
Payoff Confirmation Service (PCS)
- Assures underlying obligations are cleared
- Certification becomes part of the collateral package
- Lowers risk of buyback due to defalcation
Wire Account Verification System (WAVS)
- Verify the Owner of Closing Agent Wire Accounts
- Obtain UPL Protection for the States of NY, DE, MA, NC, SC and GA (Unauthorized Practice of Law)
- Only the ABA # and Account # is required
- Results given within seconds
- Non-verified accounts can be added & verified within 24 hours
NY State Attorney Crimes Policy (FundingShield Endorsement)
- FundingShield is in final steps to provide risk advisory services to a major insurance company that will provide more adequately designed risk coverage of partner theft for lenders using closing attorneys in the state of New York.
- Details and press notes forthcoming upon final underwriter approval
- Risk program will have a rated issuer to fulfill several hundred million in insurance capacity.
- Ratings of issuer: “AA-” from Fitch, “A+” from Standard & Poor’s, “A” by AM Best.
We look at each transaction to confirm that:
The parties to the closing are properly licensed and/or authorized including an attorney bar status verification
The documents have name, legal entity and other data matches vital to ensure coverage
The correct state forms are being used
The closing party is within its issuance limits
That sufficient insurance in type/form and amounts are in place (crimes policies, E&O or other coverages that may be needed to afford protections and states has different requirements)
The bank account where funds are to be transferred match our existing database as to account name and title
If the bank account is not on file or needs updating then we require a bank reference letter or other written confirmation to make such change (THIS IS TO COMBAT CYBER-FRAUD, WIRE REROUTING, USE OF ILLEGITIMATE ACCOUNTS THAT WE CATCH DAILY)
FundingShield offers it’s Guardian Transaction level service with a guaranteed 24 hour turn time and is proud to say our process has never cause a closing to be delayed for any of our clients
Because we monitor closings across multiple market participants our data from any client assists any other client, as we grow our knowledge continues to grow and benefits the industry at whole. Our staff prides itself in making the closing process more secure and we constantly identify new issues or gaps that we bring to the attention of our clients based upon our activity across our platform
The best technology solutions are simple to use and access which is why our system is deployable with client staff trained within days. Our technology is developed and enhanced by the collective vision, input and collaboration at FundingShield where our team comprises of lawyers, mortgage bankers, FIG investment bankers and traders, mortgage finance veterans, tech executives, and trading & pricing system IT experts that have dealt with numerous regulatory and security regimes at a system and process level
Our team’s value rests in its ability to get the necessary information to close thousands of transactions safely and securely. Our staff’s daily dialogue with title insurers, their agents and the closing community coupled with our ability to identify where issues may exist is a driver of our success and long-term engagements. Our team is able to effectively work with our clients as we are actively out and in front of potential issues instead of being reactionary & reliant on lengthy claims or repurchase processes. Get and stay ahead of risks, create transparency and make better business decisions that save you money.
William Klumper, a mortgage risk, technology and information security veteran joins the Fundingshield Advisory Board.
Newport Beach, CA (July 17, 2017) – Fundingshield, LLC., is pleased to announce the mortgage risk, information security and technology veteran, William Klumper, has joined its advisory board. William’s career has focused on driving best practices and technological...read more
FundingShield Announces Ike Suri as CEO and Launches a New Array of Products, Pricing & Service Bundles with Enhanced Tools for Fraud and Risk Mitigation in the Mortgage Industry
FundingShield Announces Ike Suri as CEO and Launches a New Array of Products, Pricing & Service Bundles with Enhanced Tools for Fraud and Risk Mitigation in the Mortgage Industry March 06, 2017 03:27 PM Eastern Standard Time NEWPORT BEACH, Calif.--(BUSINESS...read more
Business, finance, technology and media executive Ike Suri launches ‘fintech’ firm focusing on compliance and risk management for the top mortgage lenders. BY CALIFORNIA BUSINESS JOURNAL Ike Suri, a Southern California-based investor, operator and principal whose...read more
FundingShield’s Alert Update: California lifts Fidelity National Title Company’s suspension on conducting business
Body: FundingShield would like to update all on our last advisory regarding Fidelity National Title Company Suspension on doing business in California. The current status is listed as active on the Business Search Site for California here. ...read more
FundingShield Newsletter – 115. FundingShield’s services provide mortgage lenders risk and exposure mitigation in New York State Settlements by analyzing the closing Attorney’s Insurance Coverage for risk of “Theft of Client Funds”. We have seen a large increase in client business related to this concern and are working with insurers to develop products and solutions around this specific gap in coverage.
Issue 115: January 11, 2017 Total loan value of verified, validated and certified loan closings to end of year 2017 Total dollar amount of transactions identified as erroneous / fraudulent and then corrected and/or redirected with FundingShield...read more
FundingShield wishes all a wonderful, safe and joyous Thanksgiving! Take a look at our newsletter during your travels to see some of the cool things we are providing the residential mortgage industry
Issue 114: November 18, 2016 Total loan value of verified, validated and certified loan closings to end of Oct 2016 Total dollar amount of transactions identified as erroneous / fraudulent and then corrected and/or redirected with FundingShield Certification...read more
660 Newport Center Drive Suite 710, Newport Beach, CA 92660 Ph: +1 949 706 4888 Fax: +1 949 706 6501 www.FundingShield.com FundingShield LLC is pleased to announce that Arthur Rice is being added to its Advisory Board. Newport Beach, CA (October 23, 2016) –...read more
Fundingshield Newsletter 113 – FundingShield Offers Real Time Due Diligence and Risk Management on Title Agents and Closing Attorneys – A Market Leading Service
Total loan value of verified, validated and certified loan closings Total dollar amount of transactions identified as erroneous / fraudulent and then corrected and/or redirected with FundingShield Certification Cost of FundingShield Certification versus Dollar...read more
Total loan value of verified, validated and certified loan closings Total dollar amount of transactions identified as erroneous / fraudulent and then corrected and/or redirected with FundingShield Certification Cost of FundingShield Certification versus Dollar Value...read more
FundingShield Newsletter 111 – FundingShield Successfully Completes Consulting Assignment for National Title Company
FundingShield LLC - Newport, CA - July 25, 2016 - Newsletter 111 FundingShield is excited to announce that it has successfully completed a consulting assignment for a National Title Company ("NTC") that resulted in the amendment of Closing Protection Letter template...read more
FundingShield has been providing residential mortgage closing fraud & diligence verification to bank and non-bank residential mortgage originating clients as well as warehouse lenders for the past 5 years. Screening of closing agents’ valid status, licensing,...read more
Pelican Point Capital Partners, LLC., is pleased to announce that it has taken a 90% plus controlling ownership stake in FundingShield LLC
Newport Beach, CA – Pelican Point Capital Partners, LLC., is pleased to announce that it has taken a 90% plus controlling ownership stake in FundingShield LLC, a financial technology firm providing transaction level risk mitigation for the residential mortgage...read more
Frequently Asked Questions
We welcome your questions and look forward to addressing any queries you may have. Further we are excited to offer a Web based meeting presentation of our services to interested parties. Please use the contact tool below to ask any additional questions or to setup a web-based conference.
What kind of clients do you work with?
FundingShield has various lender clients such as top 10 banks, supra/regional banks, non bank lenders in various sizes and in various channels including retail, correspondent, wholesale and via warehouse lenders. Further we offer services to Title insurers to monitor closing agents, insurance companies who underwrite closing agents and attorneys and insurance companies.
What is your turn around time?
To set up a new client we can do this within days which will include agreement on volume, price and contract terms, deployment of system via our web based platform and training of staff either remotely or in person (additional fees may apply for in person training dependent upon target monthly loan volumes), In terms of how long we take to turn around a loan, we guarantee that this will be done in 24 hours.
Do you have an affiliate program?
We are open to working with other service providers in the industry or selling through another solution upon agreement of mutually agreeable pricing structure.
FundingShield is a privately held company majority owned by Pelican Point Capital Partners, LLC a merchant bank based in Newport Beach, CA. Fundingshield has been providing its services to the mortgage market for the past 5 years to several top 10, supra/regional banks, retails / correspondent / wholesales non bank lenders and to other participants in the industry such as hedge funds, law firms and insurers.
Adam J. Chaudhary
President of FundingShield LLC
- Adam J. Chaudhary is currently the President of Pelican Point Investments Group LLC (“PPI”), a boutique Private Equity & Merchant Bank in Newport Beach, California. He also serves as the President of Fundingshield, LLC, a loan level fraud prevention company for handling the funding process which mitigates fraud perpetrated by closing agents, compliance with state closing requirements and adherence to regulations. Prior to PPI, he was the Managing Director for Pelican Point Capital Partners, LLC., Vice President at Royal Bank of Scotland (RBS) responsible for US Dollar structured funding and managed the cross asset solutions team. In these roles, he developed and executed secured borrowings and capital solution products and oversaw the development of interest rate, FX, equity, credit hedging and alpha products for banks, insurers, hedge funds and specialty finance companies. At RBS, he also conducted the successful workout and renegotiation of a USD 9 billion loan portfolio while living between London and New York and also worked with Her Majesty’s Treasury risk consultants in defining the scope and need for portfolio insurance products.
- Previously, Adam was a trader in the Fund Derivatives Group at Greenwich Capital where he risk managed a USD 5 billion portfolio of loan and derivative products secured by fund equity for global hedge funds & fund of hedge funds. He was Summer Analyst at Goldman Sachs in the Fixed Income Currencies and Commodities Division on the structured credit correlation marketing and structuring team. Adam also served as a project manager for GreenPoint Credit, a sub-prime mortgage servicer focused on chattel and manufactured housing loans, where he developed cost analysis models used by the then treasury team and head of securitization.
- Adam is an avid fan of global music and a percussionist by hobby and has begun to take steps to combine these passions with charities including Development in Literacy (DIL) which promotes increasing literacy rates and women’s education in Pakistan. Adam holds Series 7 and 63 licenses from FINRA and obtained a Bachelor of Science in Finance and International Relations from Bentley College in Waltham, Massachusetts. He has also obtained certificates in credit products & derivatives from the New York Institute of Finance.
Chairman of FundingShield LLC
- Ike Suri is currently the Chairman and CEO of Pelican Point Investment Group LLC (“PPI”), a boutique Private Equity & Merchant Bank in Newport Beach, California. He also serves as the Chairman of Fundingshield, LLC, a loan level fraud prevention company for handling the funding process which mitigates fraud perpetrated by closing agents. Prior to PPI, Ike was the Co-CEO and Co- Founder of Pelican Point Capital Partners, LLC for three years. . He also has served as a CEO, Chairman, board member and adviser to private and public companies and continues to advise companies as an adviser, principal & owner/operator. Ike is a “serial entrepreneur” and founding charter member of The IndUS Entrepreneurs (TiE- South Coast). He served as a board member of Trilennia Group, a mid-market merchant banking firm and a member of the Turnaround Management Association (TMA). Ike is a Co-Founder and was Co-President and CFO for Options Group, a leading Wall Street-based executive search and consulting firm with offices in 11 countries. Ike served as CEO and Chairman of Paradise Multimedia, Inc., a spin-off acquired from Phillips Corp. of NA. He also served as Chairman and CEO of Pacific Rim Entertainment Inc., a prime-time animation production company of which he sold select assets to Disney.
- Ike originated structured and integrated acquisitions in 6 technology consolidation/roll-ups in the networking spectrum and related industries. From networking technologies in Ethernet, Token Ring, switches, routers, fiber optic codecs (applications) and wireless synthesizers, his team acquired these companies from companies such as Raytheon, Rockwell Network Systems, Westinghouse, Meret Optical, Sciteq, Relialogic and Phillips.
- He was part of a leadership team for acquisitions that helped build Sorrento Networks. Sorrento Networks reached a market capitalization of approximately $1.6b as a listed Nasdaq company. Ike was instrumental in helping the company acquire 8 companies in the roll-up strategy and further spun off 2 subsidiaries as separately listed public companies called Entrada Networks & DPI.
- Ike is also Managing Director of Azemuth, Inc., a Suri family office making principal investments since the mid-1990’s. His primary focus has centered in building enterprise value via investments and by Mergers & Acquisitions. He has a long history of working with leading organizations across various industry sectors including Financial Services, Real-Estate, Information Technology, Med-tech, Health Care, Food and Beverage and Social Media.
- Ike attended Delhi University’s Sri Ram College of Commerce and further completed Undergraduate and Graduate course work in Finance and Marketing at Rutgers University.
Senior Advisor of FundingShield LLC
- Arthur Rice is senior advisor to FundingShield. Art provides independent consulting services to the mortgage industry. He’s a specialist in productivity improvement, systems, organizational design, project management and strategic planning. His engagements include the top Banks and mortgage originators and provides third party consulting services on behalf of large consulting firms
- Art’s direct management experience is extensive and included Chief Executive Officer of Finance America, LLC, A Lehman Brother’s company where he served as a managing director and was instrumental in the turn around and growth into a top tier, low cost originator of residential loans. His prior career includes positions with Commercial Banks, Mortgage Originators and Savings Banks.
- Beyond work life, Art devotes time to Operation Smile Org. where as both a volunteer on international missions and a fund raiser, he works closely with the charity to help change lives “one smile at a time”. Among his other interests are marathons and triathlon and writing. He obtained a Bachelor of Science in Administration from Nova Southeastern University and currently holds a California Real Estate Brokers license.
Senior Advisor of FundingShield LLC
William’s career has focused on driving best practices and technological innovation for the mortgage industry in the information security, risk and technology forums. He currently serves as the Chief Information Officer of First Mortgage Company LLC in Nebraska where he also assumed the Chief Security Officer & Chief Privacy Officer roles facilitating governance and controls during the firms rapid growth.
He currently has several Mortgage Industry wide leadership roles including MISMO where he is Vice-Chairman of Residential Governance and Residential Governance Committee Member elected lender representative and Co-Chair of the Council of Chairs. Further, he is an active participant and thought leader in the MBA CIO & MBA Residential Technology Forums.
William was invited to join the Michigan Financial Industry Cyber Council (MIFICC) where he has drafted a significant portion of the legal framework including their intellectual property and antitrust statements. eld the rank of Major in the Transportation Corps.
He is a graduate of Creighton University Law School, Cum Laude, and is admitted to Practice in Nebraska and has worked as a Patent Attorney and was registered to practice before the USPTO. Education includes a Masters in History and a Bachelor of Science in Chemistry from Creighton University.
He served in the National Guard and Army Reserves as a Transportation Corps Officer with highest rank of Major in the USAR(RET). His final duty position in 1995 was as a Systems Analyst 89th RSC, Wichita, KS. He has founded a number of different companies over the years with his first one being in 1984, FirstStep Software Systems which provides programming and consulting services to manufacturing, meat packing, construction and the financial services industry.