In order to lower risk and improve loan quality, quality control is crucial in the lending sector. Quality control is not just a desirable business practice in general; organizations like the F.H.A., Fannie Mae, Freddie Mac, and V.A.V.A., as well as investors, frequently demand it.
For instance, at least 10% of all mortgage loans must be audited according to the requirements of Freddie Mac and Fannie Mae. These organizations demand that lenders have a quality control strategy in place. While the specifics differ from agency to agency, the standards are generally the same. Quality control audits should typically be conducted monthly (or quarterly for F.H.A. loans) if you are closing fewer than 15 loans per month.
According to the authorities, an independent party must conduct the audit from the audited process. For instance, a staff member shouldn’t do the pre-closing audit if they are involved in the loan closing. To ensure that loans are audited in accordance with these criteria, many lenders who perform internal loan audits set up a distinct department just for that purpose.
Each agency has particular standards for various quality assurance checkpoints, such as those early in the loan, right before the loan closes, and after the loan closes. Your quality control strategy should include several checklists, such as a pre-closing audit checklist. Use a spreadsheet or specialized loan quality assurance tools if you’d like.
The list is relatively short early in the loan. Lenders must ensure that all transcripts and supporting documentation are consistent; they must also check for the presence of a self-employment analysis (if necessary); complete tax returns for self-employed borrowers; undisclosed debt; average overtime; bonuses and commissions; a pay stub dated within 30 days of the settlement; and many other things.
Re-verification of documentation, including the credit report, the borrower’s income, employment, and assets, is required as part of pre-closing audits. This is crucial in ensuring that all documentation has been received and reviewed and that the data provided support the underwriting decision.
You may be certain that you are aware of every detail that must be re-verified by using a pre-closing audit checklist, spreadsheet, or quality assurance program tailored to the agency’s needs. It is advisable to periodically examine your quality control plans to make sure that your checklists stay compliant because each agency has different requirements and because these agencies frequently update their pre- and post-closing audit standards. The software creator typically releases updates for loan quality assurance software, ensuring that your pre-closing audit checklists are always up to date. In fact, the software may automate many of the tasks by pointing out the need for further documentation or checking the dates on pay stubs.
Regular pre-closing audits are essential, whether you create your internal checklist, use one provided by an agency, or follow software instructions. You may want to perform a pre-closing audit on each loan, even though you might only be required to do so on 10% of your loans. The software makes this much simpler. By doing this, you can raise your awareness of potential dangers and raise the general caliber of your loan portfolio.
Your loan approval process will be up to 30% faster thanks to our back-office assistance for mortgage pre-closing, and it will also be in line with GSE regulations.
Mortgage Audit Online has more than ten years of experience supporting lenders in the back office during mortgage pre-closing. Our services assist lenders in handling the majority of their regulatory compliance and loan pre-closing document validation tasks. We offer an all-inclusive solution for all pre-close needs, from collecting down payments to settling closing fees and securing certifications and client signatures on disclosures. Our services help lenders properly comply with federal laws and GSE regulations, reducing the danger of severe fines and painful legal repercussions by document management and compliance mistakes.
As a multinational provider of mortgage pre-closing support services, we combine a solid workflow with a group of subject-matter specialists to give you a strong pre-closing service. Our clients have used this to boost the effectiveness and efficiency of their loan approval procedure. Make your mortgage process more streamlined and effective by outsourcing to us your mortgage pre-closing support needs. What we do;
We draft a loan disclosure that contains all of the final information on the mortgage loan. We regularly monitor changes made to the closing disclosure form’s procedures in accordance with the Consumer Financial Protection Bureau (C.F.P.B.). Our top-notch mortgage pre-closure services clear the way for a quick and efficient closing.
We regularly audit our services to assess how well they are doing. We thoroughly evaluate all important loan documents, including client information, appraisal reports, and insurance documents, and check the data included in them for inaccuracies. Throughout the loan’s life cycle, the potential of conflicts and legal repercussions is completely eliminated, thanks to our rigorous evaluation of the loan paperwork.
Why Hire Professional Mortgage Assistance For Mortgage Pre-Closing Support Services?
Our mortgage pre-closing support services lessen the likelihood that loans may be rejected because incorrect paperwork was submitted. All of your purchase loans will be able to be sold on the secondary securities market because we are experts in document verification and loan package validation. The loan estimate, closing disclosure, escrow statements, legally required paperwork, and promissory notes that are included in the loan closing package are all carefully reviewed by us using multi-step review procedures. We rely on the newest CRM platforms and document management solutions to provide our pre-closing support services. Our systematic approach will quicken the process of approving loans overall and increase your capacity to manage more loans.
Here are a few more advantages of using our services as a provider of mortgage pre-closing support services:-
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