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Mortgage Audit Top 20 Defects and Findings in 2015

Having performed tens of thousands of mortgage compliance audits through the years, we get asked about the most common problems in the pre-fund, post-close, servicing, and MERS audits we perform.

With 2015 firmly in the books, the jury is in: here are the Top 20 defects for moderate and significant findings that we identified as part of the tens of thousands of mortgage compliance audits we performed last year.

Drum roll, please…

Defect Level
1. Initial Disclosures – Timing Violation Moderate
2. Underwriter Approval/Conditions – Missing or Defective Moderate
3. GFE – Adjusted Origination Charges Moderate
4. GFE – Important Dates #2 Moderate
5. Loan Application – Missing or Defective Moderate
6. GFE – Timing Violation Moderate
7. Appraisal Delivery – Timing Violation Moderate
8. Incorrect Income Calculation Moderate
9. Servicing Disclosure – Missing or Defective Moderate
10. GFE – Final HUD Comparison Moderate


Defect Level
1. Verification of Employment – Missing or Defective Significant
2. Incorrect Income Calculation Significant
3. Insufficient Assets to Close Significant
4. Initial Disclosures – Timing Violation Significant
5. Note – Missing or Defective Significant
6. Total Points and Fees – Exceeds Maximum Significant
7. Minimum Borrower Investment Significant
8. Servicing Disclosure – Missing or Defective Significant
9. DU or AUS Findings Report – Missing or Defective Significant
10. Income Documentation – Insufficient Significant


If you have issues with any of the above mortgage compliance defects or findings, or don’t know if you do, let us know. We can even audit your internal auditors to see how they’re doing.

Contact us about mortgage compliance audits today