MetaSource Mortgage Blog

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.

These internal personnel costs, including payroll taxes and benefits, can be 12%-20% higher than external mortgage QC costs.

Loan Buy-Backs

Of course, even internal mortgage QC personnel costs involving several people are trivial if even a few mortgages need to be repurchased because of improper loan origination. They can be resold again but often with a 10-20% loss per mortgage.

Contact us to learn more about the business case for outsourcing mortgage file QC

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