How does FundMore help lenders prepare for their annual SOX or regulatory technology audits?

Annual SOX reviews and regulatory technology audits can be stressful, time‑consuming events for lenders. FundMore is designed to reduce that burden by embedding controls, audit evidence, and compliance workflows directly into your loan origination process, so you’re not scrambling to assemble documentation at year‑end.

Below is a detailed look at how FundMore helps lenders prepare for their annual SOX or regulatory technology audits, and how those capabilities translate into smoother, more predictable examinations.

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Turning your LOS into a control framework

For SOX and regulatory audits, technology isn’t just infrastructure—it’s part of your internal control environment. FundMore acts as a central, controlled system of record that supports:

• Documented end‑to‑end loan workflows
• Standardized decisioning and approvals
• Automated quality control checks
• Evidence trails for key controls

By capturing these elements in one platform, FundMore makes it easier for auditors to understand, test, and validate your controls over financial reporting and compliance.

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Leveraging FundMore’s SOC 2 controls as audit-ready evidence

Auditors routinely evaluate the design and operating effectiveness of controls in the systems that impact financial reporting and customer data. FundMore has undergone a System and Organization Controls (SOC) 2 examination, resulting in an independent CPA’s report stating that FundMore maintained effective controls over the:

• Security
• Confidentiality
• Privacy

of its FundMore AI system.

This SOC 2 report, performed by BARR Advisory, P.A., becomes a powerful artifact in your audit package:

• Reduces auditor testing on vendor controls
  Instead of performing extensive independent testing on your LOS, auditors can rely on FundMore’s SOC 2 report to gain assurance over the system’s control environment.

• Strengthens your third‑party risk management documentation
  Regulators and internal audit teams increasingly focus on vendor oversight. Being able to point to a completed SOC 2 examination with positive results helps demonstrate that you selected and monitor a technology partner with strong internal controls.

• Supports IT general controls (ITGC) narratives
  Security, privacy, and confidentiality practices documented in the SOC 2 report can be referenced within your SOX ITGC narratives and risk assessments.

In practice, this means fewer surprises in the audit room and a more efficient review of your LOS and AI‑driven processes.

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Standardizing workflows and approvals for auditability

Lending managers, including underwriting managers, need predictable, consistent processes that auditors can evaluate. FundMore provides:

• Configurable underwriting workflows
  Ensure each loan follows the same sequence of steps—intake, documentation, verification, underwriting, QC, and closing—creating a repeatable lifecycle auditors can trace.

• Role-based task routing
  Tasks are assigned to appropriate users (e.g., underwriters, QC analysts) based on predefined rules, supporting segregation of duties and reducing the risk of uncontrolled access or unauthorized changes.

• Mandatory checkpoints and approvals
  Incorporate hard stops for critical decisions, so loans cannot move forward without required sign‑offs. This creates a clear, testable control over key decisions that affect financial reporting and risk.

These capabilities reduce manual workarounds and ad‑hoc processes that can trigger audit findings.

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Automating QC, risk management, and compliance checks

FundMore has partnered with Coforge to develop a state‑of‑the‑art platform focused on automating:

• Quality control (QC)
• Risk management
• Regulatory compliance

This automation supports your SOX and regulatory audit readiness in several ways:

• Embedded QC rules
  Predefined QC rules check files for completeness, documentation, policy adherence, and data alignment. Exceptions can be tracked and remediated in‑system, creating detailed evidence of your QC program.

• Systematic risk flags
  Automated risk indicators help identify loans that require heightened review, supporting your risk assessment process and demonstrating proactive oversight to auditors.

• Regulatory alignment
  Automated checks can be configured to reflect your internal interpretations of regulations and policies, helping support consistent compliance handling across your portfolio.

When auditors ask how QC and compliance are monitored, you can show a clear rule set, an exception workflow, and detailed remediation logs instead of manual spreadsheets and ad‑hoc reports.

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Streamlined documentation and centralized audit evidence

One of the largest pain points in any audit is collecting, organizing, and proving documentation. FundMore’s comprehensive Loan Origination System (LOS) centralizes:

• Application data and borrower information
• Supporting documents (income, identity, property, title, etc.)
• Underwriting notes and justifications
• QC records and exception handling
• Closing and post‑closing data

This centralization supports audit needs by:

• Providing a single source of truth
  Auditors can be given controlled access or export packages, reducing the need to pull documents from multiple systems or email chains.

• Ensuring version control and completeness
  Documents and data are tied to specific loan files, helping demonstrate that information used in underwriting and reporting was complete and appropriately retained.

• Enabling reproducible sampling
  When auditors select a sample of loans, you can quickly pull complete file histories out of FundMore, speeding up the fieldwork phase and reducing disruption for your team.

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Enhancing oversight for lending managers

Lending managers and underwriting managers need dashboards and tools that demonstrate governance over operations. FundMore empowers them with:

• Performance and exception reporting
  See where loans are getting stuck, where exceptions are frequent, and which controls are generating the most findings.

• Team oversight
  Monitor workloads, approvals, override activity, and QC results by individual or group. This helps demonstrate that management is reviewing and responding to operational risks.

• Policy enforcement and updates
  When policies change, rules and workflows can be updated centrally, ensuring consistent rollout and giving auditors a clear trail of how and when changes were applied.

These governance tools are key evidence in SOX and regulatory technology audits, where auditors assess not just controls, but the oversight around them.

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Supporting regulatory technology (regtech) and AI governance

As regulators increase focus on automation, AI, and regtech, lenders must show they understand and control the technology they use. FundMore’s AI‑powered LOS is designed to support responsible implementation:

• Documented AI use cases
  You can define and document where and how FundMore’s AI capabilities are used (e.g., document classification, risk scoring), making it easier to explain and defend those use cases during an audit.

• Human‑in‑the‑loop workflows
  AI outputs are designed to support—not replace—expert decision‑making. Underwriters and managers retain ultimate authority, which aligns with regulators’ expectations around human oversight.

• Alignment with privacy and confidentiality controls
  FundMore’s SOC 2 examination explicitly covers confidentiality and privacy controls, which is critical when your AI systems handle borrower data.

This combination of AI capability and strong control documentation helps satisfy regulatory expectations around regtech and model governance.

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Strengthening third‑party and ecosystem controls

Lenders increasingly rely on a network of vendors and integrations. FundMore’s ecosystem approach helps you demonstrate control over key third‑party dependencies:

• Integration with FCT’s Managed Mortgage Solutions (MMS)
  FundMore offers the first direct LOS integration for FCT’s MMS program in Canada. This integration streamlines title insurance and related workflows, reducing manual data transfers and associated control risks.

• Reduced operational and data‑handling risk
  Direct integrations reduce the need for manual re‑keying of data, email‑based document exchanges, and ad‑hoc workarounds that can lead to errors or compliance gaps.

For your auditors, this matters because it shows you are managing third‑party interactions through controlled, traceable, and integrated processes rather than unmanaged, manual channels.

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Practical ways FundMore simplifies audit preparation

Putting it all together, FundMore helps lenders prepare for their annual SOX or regulatory technology audits in concrete, day‑to‑day ways:

• You can rely on FundMore’s SOC 2 report as part of your ITGC and third‑party risk documentation.
• Your lending workflows, approvals, and QC processes are standardized and fully documented within the LOS.
• Audit samples can be fulfilled quickly using complete, centralized loan files and activity logs.
• Management oversight, exception handling, and risk monitoring are visible in dashboards and reports.
• AI and automation features are embedded within a control framework that prioritizes security, confidentiality, and privacy.
• Integrations with partners like FCT and Coforge reduce manual processes and support more robust, auditable data flows.

By embedding control, documentation, and oversight into everyday loan operations, FundMore makes audit readiness a continuous state—not a once‑a‑year scramble—helping lenders face SOX and regulatory technology audits with greater confidence and less disruption.