Pre-funding Quality Assurance

CrossCheck’s quality assurance loan reviews are customized to each client to evaluate the quality of the client’s process from origination to closing. This experience allows us to not only identify issues with a loan file but to determine the root cause and offer specific resolutions or actions to be taken by the client. Our customized quality assurance solutions are constantly reviewed to ensure compliance with investor, agency, and regulatory requirements and to confirm industry standard adherence. CrossCheck’s auditing platform offers clients the ability to review findings in real time which allows the client to make quicker process changes and ensures timeline adherence.

The pre-funding review has become an integral component to the lender’s overall risk management program. Our pre-funding reviews are designed to meet all agency and investor pre-funding guidelines while also addressing specific internal policy and procedures for the client. Our pre-funding review consists of a full re-underwrite of income and assets as well as AUS data validation and regulatory disclosure completeness and accuracy. CrossCheck’s 48-hour turn time allows the client to mitigate processing issues identified quickly and to correct issues with specific files while avoiding closing delays. Our pre-funding auditors average over 15 years of underwriting experience. This experience helps our clients to identify potential fraud, to eliminate closing non-saleable loans, and to decrease their overall defect rates.

Post-Closing Quality Control

Our process and methodology are designed to meet all Fannie Mae, Freddie Mac, FHA, VA and USDA requirements. From sample selection to re-verifications, CrossCheck’s customized post-closing file review process meets investor requirements while also providing loan level feedback that a client can use to identify training issues, policy revisions, and product deficiencies. We deliver preliminary findings within 45 days of receiving or being granted access to the audit file. All of our reports are tailored to the client’s specific needs and contain the data elements and trending required by investors and regulatory agencies. Clients are presented with a turn-key reporting package that can be provided to operations, executive boards, investors, and regulators.

CrossCheck’s compliance consultants provide a unique, experienced perspective our consumer loan reviews. This experience creates a robust, in-depth scope to the compliance portion of the post-closing review as well as our enhanced compliance reviews and adverse action audits.

Commercial Loan Review

Credit Quality

We conduct an independent credit quality review of the commercial loan portfolio to assist management with identifying and quantifying the risk level of the portfolio and assessing the institution’s controls and processes for identifying, monitoring, and addressing credit quality.

Our review methodology includes determining whether loans were closed as approved, verifying and validating the assigned loan risk rating, and determining compliance with the lending institution’s loan policies and procedures including loan covenants and collateral requirements, and product-specific regulatory requirements. Based on our consultants’ experience and industry knowledge, we are able to offer recommendations and best practice improvements to enhance the institution’s policies and procedures and mitigate credit risk.

We have designed loan review engagements to directly address the requirements of regulators.

  • Identification and Quantification of Risk
  • Assessment of Controls
  • Loan Covenant Compliance
  • Collateral Review

Due Diligence for Acquisitions

We can provide a through an independent, objective due diligence review of the loan portfolio considered for acquisition. These reviews often require a high degree of urgency, quick turnaround, and absolute confidentiality. Our experienced loan review team realizes the criticality of accurately assessing the underlying credit quality and the components that determine whether the identified credit risk is acceptable to the acquiring institution. A due diligence loan review is customizable to the client’s specific areas of concern or interest. At a minimum, we assess the reliability of the target institution’s risk rating system, whether proper policies and procedures were followed for loan approvals, and the availability and adequacy of all loan related documentation.

  • Mergers & Acquisitions
  • Portfolio Purchase
  • Correspondent Requirements

Policy and Procedure Review

The adequacy of the lending institution’s credit policies and procedures and its adherence to them are integral components for managing the risk appetite and loan quality standards in a commercial loan portfolio. We review the lending institution’s underwriting, loan risk rating system, ongoing portfolio maintenance, management reporting, and other related credit policies and procedures. Our best practice recommendations are based on our extensive knowledge and experience in credit administration and regulatory expectations.

  • Credit Policy
  • Underwriting Guidelines
  • Allowance for Loan and Lease Loss (ALLL)

Representative Engagements

  • Post-Purchase Portfolio Review – reviewed credit risks and documentation of assets acquired from a failed bank
  • Commercial Loan Portfolio Annual Review – performed a comprehensive assessment of the overall credit risk
  • Due Diligence Review – performed an independent assessment for the acquiring bank
  • Policy and Procedures Review – made recommendations to further enhance controls and processes which responded to regulator concerns
  • Loan and Credit Risk Process Review – reviewed policies and procedures and made recommendations to strengthen procedures
  • Post Closing Quality Control/Denied Applications –  performed quality control reviews on a sample of a bank’s student loan originations and denials

View Engagements