Loan repurchase requests to lenders have increased in the past three years, highlighting the need for an improved approach for lenders to deliver loans that meet market investor’s underwriting and eligibility guidelines. This is why our Whole Loan Purchase Review (WLPR) service is engineered to:
- Identify and implement policy and process that reflects each investor’s unique risk profile,
- Provide technology enhancements improving compliance, underwriting and eligibility guidelines, and
- Improve transparency and consistency in loan production.
Lenders who implement WLPR enhancements will promote improved loan delivery data that is complete, accurate, and fully reflective of the terms of the mortgage. WLPR will also help ensure that the loan meets the credit and eligibility standards, pricing guidelines, and other requirements of investor Selling Guides or negotiated variances. A primary focus is on capturing critical loan data earlier in the process and validating it before, during, and immediately after loan delivery.
The Lender’s post-closing process will begin with the delivery of whole loans to MetaSource Mortgage. Lenders can use secure email delivery, hard file delivery or direct upload. Our web-based portal can be private labeled for a seamless customer experience. An email notification will alert the purchase review department of receipt of the file and/or pool of loans.
For paper (hardcopy) files, the purchase review team will begin with setup and final indexing of the package. Upon completion and indexing, the purchase review team will perform a prescribed Purchase Review audit of relevant documents and data. Upon completion, a Purchase Advice report will be produced, provided to Lender and posted in the archive.
The Purchase Review audit is designed to ensure that the loan has been scrubbed of discrepancies and deficiencies as they relate to purchase or boarding of the loan; however, the PURCHASE REVIEW audit is not and should not be construed as underwriting. MetaSource Mortgage uses standard purchase review auditing to include:
- Product eligibility
- Document review addressing availability, completion and accuracy of executed documents, to include undersigning or notary endorsement issues
- Data review and comparison with the source documentation or system of record (AUS) verifying investor identified fields
- Review of any issues identified to affect salability or loan performance as experienced or added to the process flow
- Automated compliance testing that includes: TILA, HOEPA, HPML, MDIA, ROR, FNMA, TRID points and fees and state consumer credit
MetaSource Mortgage offers the flexibility to finalize the Purchase review and loan delivery using a different process flow for cash or MBS delivery. We offer customization through automation making boarding packages or the management of MERS TOB/TOS transfers or delivery of Hello/Goodbye Letters entirely within our scope of services.
Our whole loan purchase review service ensures:
- The ability to vet standard and negotiated contract terms and variances per investor, per product and per loan
- Full visibility to loan quality, pricing, and suitability with scoring of loan pipelines for more “hands on” management of compliance, fraud risk, data integrity, income and valuation, servicing data and potential integration with secondary markets and/or rating agencies
- Best in class technology ensuring consistency, standardization, full imaging/archiving of loans, secure data transfer of loan data or documentation, management of MERS registration and transfers
- Clarity on risk exposure and the minimization of potential repurchase demand due to error in loan underwriting, closing, and/or post-closing
- Real-time and on-demand tracking and reporting
- Document custody and retention management