Mortgage QC Case Study: First Colony Mortgage

For the past seven years, MetaSource has provided First Colony Mortgage with mortgage file quality control (QC) and audit services.

First Colony Mortgage is a full service mortgage company founded in 1984 by John Aldrich and Scott Shelley. Most mortgages are processed, underwritten and closed in house. Since inception, First Colony Mortgage has funded over 25,000 loans and over $3.5 Billion in dollar volume. First Colony Mortgage provides fast, efficient service and is ready to help you get started on the home buying process.

Mortgage QC by the Numbers

MetaSource provides First Colony Mortgage with the following mortgage QC audit services:

• Pre-Fund Audits: approximately 300 mortgages per year (10% of 3,000) with specific attention paid to credit criteria, compliance and appraisals
• Post-Close Audits: approximately 300 mortgages per year (10% of 3,000) with specific attention is paid to high-risk areas
• Reverse Mortgage Audits: about 5 per year with specific attention is paid to early Payment (EP) default loans that more than 60 days delinquent

Mortgage QC Results

By outsourcing mortgage compliance audits to MetaSource, the cost of First Colony mortgage QC is approximately 15% less than what it would cost to do it in house, every year. This is because the following is saved:

• The cost of one full-time, in-house auditor
• Auditor training and keeping up with updates from Fannie Mae, Freddie Mac, FHA, VA, HUD, and the CFPB
• The need for one manager to provide part-time supervision/oversight

The First Colony Experience

According to First Colony’s compliance CEO and head underwriter, “MetaSource has helped alleviate the burden of mortgage compliance auditing. If we didn’t use MetaSource, we’d have to do it in house. It may initially appear cheaper until you take into account the costs of hiring and managing people. Additionally, Fannie Mae and Freddie Mac have many QC requirements and MetaSource keeps up with them and ensures we are in compliance – a load off of our plate.

“MetaSource knows exactly what to look for in the mortgage file QC process and provides accurate information via their QLink software. They offer good quality, are reliable, are dependable and care about what they provide. We would recommend MetaSource to any mortgage originator or servicer, especially if they do in-house audits today.”