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Mortgage Quality Control Audit
A mortgage quality control audit is an essential part of any mortgage loan origination process. A quality control review is necessary to evaluate the quality of loan origination, identify broad and specific issues, and track trends. Lenders must have a quality control review performed every six months, and the audit must be completed within 90 days of closing. A QC report provides management with the necessary data to determine which areas require improvement, as well as how quickly they must take action.
Mortgage quality control audit software is available to help lenders assess the quality of their processes. One such system is developed by LoanLogics, a data-driven, cloud-based technology company. The QC audit software incorporates a random selection engine into the process and is designed for lenders to mold the system to their specific processes. It enables mortgage QC departments to begin remediation actions as loans move through the system, allowing them to quickly identify defects and ensure loan quality is consistently high. This article will help you get in touch with the right mortgage quality control audit software, check it out.
ADFITECH provides post-closing mortgage quality control and reviews, and provides a full range of reporting platforms. Mortgage quality control audits conducted by ADFITECH include statistical, discretionary, and random sampling. The company's experts review closing documents and transactions, ensuring compliance with underwriting requirements. They also provide high-cost tests. For these, a mortgage quality control audit is crucial to a lender's reputation.
A pre-fund QC audit is the most important aspect of mortgage quality control. Freddie Mac, Fannie Mae, and FHA require a pre-fund QC audit. This proactive measure is a smart way to ensure quality loan processing, and eliminate issues before they turn into major problems. A pre-fund QC audit can save a lender as much as 15% of its costs. A mortgage quality control audit can also help reduce risk for lenders and investors.
A Mortgage quality control audit can also detect red flags in the production process. This may be a result of undisclosed self-employment or an arm's-length transaction. Although a mortgage quality control audit touches a small percentage of mortgage loans, it is crucial to identify any potential problems early on in the process. Any lender accepting incomplete documentation is evidence of a breakdown in the process and could put the lender at risk of repurchase. Consider contacting the culp qc professionals to get excellent services.
Lenders must determine a target defect rate that reflects the quality goals and standards. The lender should use a random QC sample to determine what the target rate should be for a specific loan or asset. The audit can also help lenders understand which aspects of the loan process are most at risk. When determining a target rate for a specific risk level, lenders can determine where to focus their attention to improve quality. It is important to note that the loan-level audit is a key component of quality control. For more information, check out this related post: https://en.wikipedia.org/wiki/Mortgage_law.