Mortgage quality control (QC) is never simple. QC professionals have a lot on their plates – from developing question sets to keeping up with fluctuating volumes to meeting the shifting expectations of agencies and investors.
But this complex to-do list doesn’t need to be a constant source of worry. With this mortgage QC checklist, you can establish a reliable quality control process and find success.
Auditor Experience
How experienced is your audit staff? Conducting mortgage quality control audits is by no means easy, which means the employees responsible for them need to be well-versed.
Your auditors should be very familiar with agency and investor guidelines, as well as federal and state regulations, and have a minimum of 7 years’ underwriting experience. The ideal QC professional also has their Direct Endorsement (DE) and Lender Appraisal Processing Program (LAPP) approval designations and stays updated on best practices.
Want to learn more about what the ideal audit staff looks like? Download our detailed (and free!) mortgage QC checklist.
Staff Bandwidth
The current market is pushing mortgage companies to rightsize. According to Bloomberg, some lenders are reducing their staff by as much as 20% at a time. This reduction in workforce undoubtedly impacts bandwidth. After all, 20 employees can’t get as much done as 40 in the same amount of time.
And when it comes to mortgage QC, bandwidth should be top of mind. The GSEs update their guidelines regularly and your staff needs to have the capacity to keep up with them. When teams don’t have time to review requirements regularly, they increase their risk of noncompliance. Learn more about the importance of bandwidth to streamline QC review in our comprehensive quality control checklist.
Return on Investment (ROI)
If your organization is concerned with finances, you’re not alone. With some lenders experiencing nearly 60% drops in revenue year-over-year, it’s hard not to have financial concerns.
It’s a good idea to have a method for determining quality control ROI, so you can set yourself up for financial success in any climate. To start, identify the associated costs that you should factor in when determining ROI. These costs should include:
- Employee labor costs
- Turnover costs
- Equipment expenses
- Investor fees
Keep in mind that there are ways to improve your QC return on investment. For instance, you can outsource mortgage quality control audits to reduce labor and turnover costs. When you outsource, you leverage a variable cost model that helps you avoid overstaffing and overspending when volumes are low without risking being understaffed when volumes are high. Gain confidence that your loan files meet mortgage compliance requirements during the post-close and pre-fund stages.
Get Mortgage Quality Control Support Today
The mortgage quality control checklist doesn’t end there! In an effort to provide you with all the information you need to find QC success in the future, MetaSource put together a detailed guide you can download for free. It takes a deep dive into:
- QC Infrastructure: the right people and technology
- QC Processes: the right questions, methodology, and plans
- QC Finances: the right KPIs, criteria, and goals
If you’re interested in improving your QC process, you can download the detailed mortgage QC checklist or contact us to learn about the outsourced QC and compliance services and state-of-the-art digital solutions we provide. Our mortgage compliance solutions include:
- Pre-fund QC Audit Services – Our team of experienced mortgage professionals performs trusted pre-funding audit services to help you make better decisions faster, comply with agency requirements, and save both time and money.
- Post-close QC Audit Services – MetaSource keeps up with evolving agency post-closing guidelines and maintains impressive turn times to help lenders ensure compliance.
- Servicing QC Audit Services – We specialize in 22 different types of servicing QC audits to meet Fannie Mae, Freddie Mac, FHA, Ginnie Mae, VA, and CFPB guidelines while enhancing customer service and efficiency.
- MERS QA and Compliance Services – Satisfy MERS QA requirements, reduce error rates, and simplify data reconciliation with MetaSource’s MERS compliance solutions.
Your Resource for Developing a Successful Mortgage QC Process
Download our checklist to learn how you can establish a quality control (QC) process that will prevent errors, hefty fines, and strained relationships with the agencies.
