Monthly Quality Control Review

A mortgage subsidiary of a regional bank requested that we implement and perform the monthly post-closing quality control review on 10% of their production. The objectives of the quality control review are to:

• Assess the accuracy and integrity of the data used to underwrite the loan by reverifying borrower information and re-underwriting the loan;
• Assess whether the loan was underwritten based on established loan policies, prudent underwriting and regulatory compliance practices, and appropriate risk tolerances; and
• Determine compliance with FNMA/FHLMC, FHA, and VA basic requirements and review the files for fraud, including use of a red flags checklist.

Detailed reports were provided to the client that allowed them to not only correct individual exceptions where possible, but also to identify gaps in their process and implement corrective action to prevent the same errors from recurring.