Wednesday, March 02, 2016
MetaSource has served Academy Mortgage Corp. with mortgage file quality control (QC) and audit services for the past four years. In addition to helping Academy is in compliance with mortgage QC regulations from Fannie Mae, Freddie Mac and FHA, MetaSource does it all for half of what it would take Academy to do it in-house.
Founded in 1988, Academy Mortgage is one of the nation's largest and most respected independent mortgage lenders. Unlike banks and mortgage lenders that consolidate operations and service offsite, Academy has the distinct advantage of being a direct lender. This means that Academy Mortgage performs all loan processing, underwriting, closings, and funding at 200 local branch offices located all over the country.
Tuesday, February 16, 2016
Randomly auditing 10% of your mortgages on a post-close basis is required by Fannie Mae, Freddie Mac and the FHA/HUD. If this is news to you, you need to contact us immediately...
What is news to many lenders is how implementing document-related best practices reduce post-close quality control (QC) findings, minimize non-compliance fines, slash operating costs, and can even lead to a competitive advantage in mortgage origination.
This whitepaper answers the following questions:
Thursday, February 04, 2016
Attention Mortgage Servicers: visit us at the National Mortgage Servicing Conference & Expo 2016 in booth #315
Monday, February 01, 2016
There has recently been some ambiguity regarding the timing of mortgage quality control (QC) that needs to be part of any mortgage originator's mortgage QC plan with FHA and Fannie Mae.
FHA QC Timing Response
Previous to the implementation of the new FHA 4000.1 Handbook, FHA's QC timing requirement was to have your initial audit completed in 90 days from the end of the month in which the loan was closed. With the new 4000.1 Handbook, FHA has shortened that time frame to 60 days. Many people do not realize this change has occurred. This new FHA rule is 30 days sooner than what Fannie Mae and Freddie Mac currently require. Many lenders are still following the Fannie timelines, which would make their QC out of compliance with FHA's new timing rules.
We reached out to FHA directly for comment and confirmation and we received a written response. FHA stated that all lenders approved by FHA need to have their QC audits files selected, audit completed and rebuttals completed within 60 days from the end of the month in which the loan was originated.
We have also heard several rumors that Fannie Mae may be changing to this timing next year as well.
Tuesday, January 05, 2016
For the past seven years, MetaSource has provided First Colony Mortgage with mortgage file quality control (QC) and audit services.
First Colony Mortgage is a full service mortgage company founded in 1984 by John Aldrich and Scott Shelley. Most mortgages are processed, underwritten and closed in house. Since inception, First Colony Mortgage has funded over 25,000 loans and over $3.5 Billion in dollar volume. First Colony Mortgage provides fast, efficient service and is ready to help you get started on the home buying process.
Monday, December 21, 2015
Ensuring the mortgages you originate and/or service are in compliance with myriad requirements is critical for both operating efficiently and profitably, as well as avoiding major fines from the CFPB. Below are four essentials of creating and ensuring that your mortgage quality control (QC) plan is compliant and effective.
Monday, December 14, 2015
If you perform mortgage file quality control (QC) in-house, we have two questions for you:
In-House vs. Mortgage QC Outsourcing Cost Comparison
Based on our experience, one extensively trained auditor with underwriting experience can audit 4 loans a day. If you fund 4,000 mortgages per month and audit just 10% on a post-close basis, you will need 4 auditors plus two support staff to track down trailing documents and perform verifications, one mortgage QC manager, and someone to audit the auditors.
Monday, December 07, 2015
Many mortgage originators and servicers conduct their own mortgage file QC audits. Who's auditing these auditors?
With continuously changing post-close, pre-fund, servicing, and MERS changes from Fannie Mae, Freddie Mac, FHA, HUD, and the CFPB, it's increasingly important to ensure your audit team is up to speed on all mortgage QC requirements and self-auditing your mortgage files properly.
Avoiding the Deutsche Bank Scenario
Deutsche Bank and their subsidiary MortgageIT settled federal fraud charges for $202 million as a result of repeated false certifications made to HUD in connection with the residential mortgage origination and sponsorship practices of MortgageIT. At the time of the lawsuit, the FHA had paid insurance claims on more than 3,100 mortgages, totaling $386 million, for mortgages endorsed by MortgageIT.
Tuesday, December 01, 2015
Now that Thanksgiving is over, few things strike fear into the hearts of the mortgage industry more than the Consumer Financial Protection Bureau (CFPB) and the new TILA-RESPA Integrated Disclosure (TRID) rules that went into effect on October 3, 2015.
While the grace period for enforcement may extend into the new year—many expect March 2016, which is six months following the October 2015 deadline—mortgage servicers have been trying to address TRID since it was first announced a year ago.
Monday, November 30, 2015
Managing trailing documents is a daunting task and a big issue for many mortgage originators, especially those processing up to 1,000 loans per month. Most don't have a separate department to handle this paperwork, yet it's critical to make sure everything is captured so you can be compliant, deliver the final title expediently and get investors all the necessary paperwork.
An emerging best practice for managing mortgage trailing documents is to utilize mailroom/PO box scanning services and workflow automation software.