The AI State Compliance Engine™

50-state regulatory logic that runs on every transaction.

Every state treats lender-held funds differently. Hover a state for the short version of what its law requires. Click for the full breakdown — the rule, what it means for you, and where PHOCIS fits.

Tier 1 · Mandated fund control The state requires or licenses the third party holding your loan funds.
Tier 2 · Statutory trust states Construction and loan money carries trust character by law — misapplication brings civil or criminal liability.
Tier 3 · Licensing-trigger states Business-purpose lending trips a license or registration based on collateral, rate, or borrower.
Tier 4 · Standard framework Universal fund-holding principles apply; state license lane confirmed, scope in verification.

PHOCIS operates as a fintech partner of Wells Fargo. Client funds sit in Wells Fargo business banking accounts, accessed through structured controls pre-verified with Wells Fargo's underwriting team — bank-grade coverage in all 50 states.

What it checks, every loan

Eight live gates. Refreshed daily.

The engine runs against current statute and current regulator data — not a snapshot taken at integration time.

1

License + status

NMLS, DRE, DFPI lookups at application and pre-funding. Sponsorship verified per originator.

2

Agency approval

FNMA, FHLMC, GNMA, HUD, VA seller/servicer IDs verified.

3

Bond + net worth

DFPI floors monitored against quarterly MCRs. Surety bond currency alerts.

4

Disclosure cadence

MLDS, TRID, TILA/RESPA/ECOA/FCRA timing enforced by the engine.

5

High-cost triggers

Covered-loan thresholds flagged before funding under each state's code.

6

OFAC + AML

CIP + sanctions screening at application and pre-funding.

7

HBOR + servicing

Single point of contact, no dual-tracking, post-sale timing.

8

Evidence package

Timestamped, signed, retained ≥7 years. One-click regulator export.

Important

This is a lender feature.

The AI State Compliance Engine is built for direct & private lenders. Contractors and family offices interact with PHOCIS through different workflows — see the Contractor or Family Office pages.

See the Lender platform →
Get started

Tell us who you are. We'll take it from there.

Every sector gets a different demo. Pick the one that fits.

I'm a Lender I'm an Attorney I'm a Contractor I'm a Developer I'm a Family Office
Open your account in under 5 minutes →