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. Establish Your Credit Culture Mortgage lenders…
If you perform mortgage file quality control (QC) in-house, we have two questions for you: Who’s auditing your auditors? Would you outsource mortgage QC if you could save 12-20% and decrease non-compliance/buy-back risks? In-House vs. Mortgage QC Outsourcing Cost Comparison Based on our experience, one extensively trained auditor with underwriting experience can audit 4 loans…
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…
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,…
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…
Ginnie Mae has now launched the new Issuer Operational Performance Profile (IOPP) tool. The new tool provides issuers with a framework and methodology that can be used to gauge their effectiveness against Ginnie Mae’s expectations for for Issuer performance. The IOPP “scorecard” will provide a method to measure an Issuer’s operational performance against peers. “The…
New TILA-RESPA integrated disclosure rules (TRID) are tricky to condense because the rule runs almost 2,000 pages. However, that is why you turn to MCA. In this blog post, we will explain what TRID replaces in a loan file and what you should do about it. Loan Types Affected TRID is pursuant to the Dodd–Frank…
The CFPB’s latest version of Loan Originator Compensation rule took effect on January 1, 2014 and although the rule seemed fairly straightforward—citing “no compensation based on loan terms,” lenders are still facing a dilemma today on how they can and cannot appropriately pay their loan officers or brokers on mortgage loan transactions. This article tries…
What Is Included in a MERS QC Audit? Our MERS QC Audit includes a loan-level review based on a random sampling of loans from client’s total YTD production volume (# of units) and also looks at the company’s compliance of six main items: Client has in place procedures designed to provide reasonable assurance that is…