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MetaSource QC Findings Report Highlights Skyrocketing Appraisal Defects & Loan Type Variations

SALT LAKE CITY, Utah, February 22, 2024 – MetaSource, LLC (“MetaSource”), a trusted leader in mortgage compliance solutions, published its annual Mortgage Quality Control (QC) Findings Report.

The report dives into what the MetaSource Team uncovered during its analysis of 2023 QC defects. It provides a complete list of the top 15 findings as well as key insights into trends and challenges. Among the most noteworthy insights were a surge in appraisal defects and differing quality control struggles between loan types.

A Notable Increase in Appraisal Findings Year-Over-Year

MetaSource discovered there were four times as many appraisal defects in 2023 as 2022. While the increase was significant, it wasn’t necessarily surprising to the mortgage compliance partner.

With the Federal Housing Finance Agency focusing more on appraisals, MetaSource enhanced its audit for better red flag identification. The team expected an uptick in appraisal defects upon implementing the enhancement, and this prediction came to fruition.

Significant Variations in Findings by Loan Type

Appraisal defects varied by loan type, with conventional loans being the driving force behind the increase. Several other observations were also made when taking a look at conventional and Federal Housing Administration (FHA) loan defects.

“Conventional loans were the main culprit for Legal/Regulatory/Compliance findings,” according to MetaSource Senior Director of Mortgage Services Brady Meadows. “But, interestingly, 10% of all FHA defects were in this category.”

To learn more about appraisal defects, finding variations by loan type, and additional discoveries made during MetaSource’s analysis of 2023 QC audit findings, download the full report. It includes a full list of the top 15 findings as well as predictions for the year ahead.

About MetaSource, LLC

MetaSource is a Digital Transformation Solutions provider, focused on Business Process Outsourcing (BPO) / Business Process Management (BPM) services integrated with Enterprise Content Management (ECM), workflow solutions, compliance services and customer experience processes. MetaSource helps its clients manage risk, improve quality, increase efficiency and realize their most important goals — with special expertise serving the mortgage industry. MetaSource’s mortgage services include quality control (QC) audits (pre-fund, post-close, servicing, MERS), lien release, whole loan purchase reviews, and more. MetaSource’s solutions allow clients to focus on their core business while MetaSource does the rest.

Download the 2023 Mortgage QC Findings Report