How are you selecting loans for your pre and post-close reviews? Are you still using the standard random sample method? Is it every 10th loan or some variation? Do you really believe you are getting the best results for the audit dollars you spend? Probably not, if you’re still “shotgunning” your loans for selection. The 10% random selection may satisfy…
With all the talk recently about quality and compliance, we need talk about if a lender has an adequate written Quality Control Policy. Do you? Whether you are outsourcing QC or performing it internally, a lender must have a written plan. This policy must clearly outline the scope of what a lender wants, and needs, to ensure their loans are…
For years, lenders were required to perform a quality control review of the loans they closed. Today, lenders need to perform both the post-closing QC review but must also conduct reviews on loans prior to the closing. These required pre and post-closing quality reviews present a great opportunity for lenders to identify potential problems, and they help to indicate where…
Lenders are constantly looking for ways to increase business and bring in more loans. The intent is to increase income and profitability. Unfortunately, many are finding that increased loan volumes alone do not necessarily translate into more profit. In many cases, more loans lead to more expense and increased problems, resulting in a decrease in net profits per loan. If…
“Lenders are doing a better job of originating loans with fewer defects,” according to a report provided by First American Financial Corp in a recent article appearing in National Mortgage News (Higher Spending on Compliance Results in Fewer Errors on Apps). The article stated that The First American Title Loan Application Defect Index decreased again in February after declining steadily…
Since the announcement of the new TRID rules, lenders have been working to integrate the use of the two new forms and comply with the requirements for information and fee disclosure. With actual implementation has come a myriad of challenges and problems reported by lenders and closing agents which have been blamed for consumer confusion, increased loan costs, closing delays…
