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It never fails. You are in the middle of managing a large enterprise-wide project, tech implementation perhaps, or just juggling unforeseen volume and one of the government sponsored entities’ (GSE) ‘comes a knockin’. Many lament that it is bad timing, but in the mortgage industry is there ever a good time? We all saw how the industry was scrambling in 2020.
Agency audits can certainly suck up a lot of a quality control (QC) manager’s time without the right tools to get the requested information quickly and accurately. Robust, data-driven automated loan quality management tools that use verified, validated loan file data to drive reviews and provide a well-documented audit trail are of course at the top of the list. Beyond that, here are three must have tools to make that GSE audit go even smoother.
- Agency Centric Reporting – Rather than sorting through your systems for the data and documents tied to the loan files being examined, manually tying together all the loan-level reports, worksheets and calculations, various field reviews, etc., imagine being able to just “search, click and get.” Agency centric reporting features in modern day QC systems automate the compilation of artifacts needed for the various agency audits. A process that used to take days, even weeks to get ready for depending on the number of loans can now take minutes.
- Auditing the Auditor- Agencies want to see that you’re monitoring the quality of the work performed by your staff or those of a chosen vendor. Automation is a great way to demonstrate this, as well as get the job done efficiently. Audit the auditor tools allow you to go into at any time, even when an agency is onsite for an audit, select a random sample of loans to analyze, see tests that have failed, review auditor rebuttal commentary, and put any loans into queue for further follow up.
- Action Plan Reporting– Once you have shown you take proactive steps to monitor an auditor’s work, agencies now want to see that you’re implementing and tracking plans to reduce the frequency of defects and prevent future recurrences. Action plan reporting can help tie a training program to specific defects and then monitor its effectiveness in eliminating the root cause of the defects. Are branch offices forgetting to mark race/ethnicity on the loan file, if none was provided? Show you’re meeting with staff bi-weekly to remind them what steps they need to take to ascertain, fill in and then monitor future occurrences
What’s better yet, tools like these are accessible to lender’s outsourcing QC services too.
If you’ve had a poor experience with an agency audit, are anxious about getting ready for one or just want to learn more about confidence building tools like these available in modern day QC platforms, request a product demo of LoanLogics’ loan quality management platform, LoanHD®.
