MetaSource Mortgage Blog

Mortgage QC Timing Update

Monday, February 01, 2016

Mortgage QC Timing Update

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.


Mortgage QC Case Study: First Colony Mortgage

Tuesday, January 05, 2016

Mortgage QC Case Study: First Colony Mortgage

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.


4 Essentials of a Compliant Mortgage QC Plan

Monday, December 21, 2015

4 Essentials of a Compliant Mortgage QC Plan

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.


The Business Case for Outsourcing Mortgage QC Audits

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.


Who's Auditing Your In-House Mortgage File QC Auditors?

Monday, December 07, 2015

Who's Auditing Your In-House Mortgage File QC Auditors?

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.


Mortgage Servicers: Are You Ready for TRID?

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.


Trailing Document Best Practices

Monday, November 30, 2015

Trailing Document Scanning & Workflow Automation

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.


Mortgage QC Audit Self-Revisions Now Available with QLink

Monday, September 14, 2015

QLink Software | MCA | MetaSource

Take Control of the QC Revision Process

Mortgage QC Audit Software Self-Revision Lenders are solely responsible for the work of their quality control vendors, so why not have control to update your QC partner's work in accordance with what is best for your company?

Submitting revisions to your mortgage audit quality control findings can be tedious and frustrating on a good day, especially considering the delay between submission and the update of your defect rates and metrics. Mortgage Compliance Advisors (MCA), from MetaSource, feels your pain and has the solution you've been looking for with the new Self-Revision capability of QLink.


A Secure Compliance Partner Is Essential

Monday, August 10, 2015

A Secure Compliance Partner Is Essential

With all the cyber-attacks and security breaches in companies, in the US government, even in cars, security should be the top priority for all companies and their mortgage quality control compliance partners.

In today's world it is not enough to just depend on SFTP for secure mortgage document submissions. The only defense you have from a security breach is your password… which we hope isn't "password."


How to Ensure Mortgage QC Plan Compliance

Monday, August 03, 2015

Quality Control Plan

Government agencies and investors require that you to have an updated mortgage quality control (QC) plan. What's the state of your plan?

If you don't have one, aren't sure if it meets the necessary requirements (which now change several times each year) or if your QC plan has not been updated in the past 12 months, then read on.


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